OYO Business Model Explained: How Oravel Stays Makes Money, Brands and FY25 Financials

OYO is often remembered for its cash-burning years. The FY2024–25 annual report tells a different story. Oravel Stays Limited, OYO's parent, now runs a profitable, asset-light platform across 35+ countries. It owns one of America's best-known motel brands and a European vacation-rental business, and its brands run from budget rooms to premium hotels.

This article explains how OYO makes money, what it owns, how FY25 and Q1 FY26 went, and what the numbers mean for anyone looking at OYO unlisted shares.

Key takeaways

• Two-sided tech platform, not a hotel owner. OYO connects independent hotel and home owners ("Patrons") with travellers and earns a share of each booking.
• FY25 scale: gross booking value (GBV) of ₹16,250 crore, up 53% YoY, on revenue of ₹6,250 crore, up 16%.
• Profitable: EBITDA of about ₹1,100 crore (17.3% of revenue) and 12 straight EBITDA-positive quarters.
• Faster start to FY26: Q1 revenue ₹2,019 crore (+47% YoY), GBV ₹7,227 crore (+144%), and PAT above ₹200 crore, more than double Q1 FY25's ₹87 crore.
• A US business now: the acquisition of G6 Hospitality (Motel 6 and Studio 6) added 1,500+ storefronts across the USA and Canada.
• Moving upmarket: mid-market and premium brands (Townhouse, Collection O, Palette, Sunday Hotels) are the faster-growing, higher-yield part of the portfolio.

OYO at a glance

How the OYO business model works

OYO is a full-stack hospitality technology platform with two sides.

Supply side: Patrons. Owners of small and mid-sized hotels and homes, often unbranded and under-used, list their properties with OYO. In return they get:

• an OYO brand, which makes them visible and trusted
• a full tech stack: central reservation system (CRS), property management system (PMS) and channel manager, all built in-house
• revenue management, with AI/ML-driven dynamic pricing and yield management
• distribution through OYO's own apps and third-party travel sites

Patrons pay a commission on each booking.

Demand side: customers. Travellers book through the OYO app, the CheckIn Hotels app or partner channels, at price points from budget to premium. OYO reports an average India rating of 4.6★. In Europe, Belvilla and DanCenter score 4.0+ on Trustpilot. In the US, Motel 6 guests are served through the My6 loyalty app.

In the middle: the tech engine. Data science ranks and recommends properties, sets prices and powers features like virtual check-in and dynamic locks. The report describes the OYO app as a top-10 most-downloaded travel app.

Why it is asset-light: OYO does not need to own the buildings. Patrons put up the property and the capital. OYO supplies brand, demand and software, and takes a commission or management fee. That lets it add inventory quickly without a heavy balance sheet.

Revenue streams

Brand portfolio

Premiumisation is the strategy to watch. Budget rooms bring volume but thin revenue per booking. Mid-market and premium stays earn more per night, attract better-quality demand and improve unit economics. Pushing up the brand ladder is how OYO plans to grow revenue faster than room count.

The G6 Hospitality acquisition: OYO's US bet

In FY25 OYO acquired G6 Hospitality, owner of Motel 6 and Studio 6, adding 1,500+ storefronts across the USA and Canada. G6 runs largely on franchising, which fits OYO's asset-light model. It gives OYO an established brand in the world's largest hospitality market, along with the My6 loyalty programme.

G6 is also a big reason FY26 growth looks sharp. It was acquired during FY25, so part of the jump in Q1 FY26 revenue and GBV likely reflects a full quarter of G6 being consolidated, not only organic growth.

Financial performance

FY2024–25 (consolidated, as reported in the annual report summary)

Q1 FY2026 (April–June 2025, provisional)

Two things stand out:

1. Profitability has held. Twelve consecutive EBITDA-positive quarters show the turnaround is not a one-off.
2. GBV is growing much faster than revenue. More bookings are coming through lower-take formats such as franchising, vacation rentals and G6, so OYO's revenue as a share of GBV is falling even as volume grows. That is typical of asset-light models: lower revenue per booking, but a lighter balance sheet.

Where OYO operates

In total OYO operates in 35+ countries, with 2,000+ CheckMyGuest partner properties on top of its hotel and home network.

What this means for OYO unlisted shares

OYO is not listed on any stock exchange, but its shares trade in the unlisted market. ShareSaathi currently puts OYO's market capitalisation at about ₹38,088 crore. Against the reported figures, that works out to:

Annualising one quarter is a rough tool: travel is seasonal, and Q1 FY26 includes a full quarter of G6. The gap between the trailing and run-rate multiples shows why the market is paying attention, though. If OYO sustains Q1-style profits, today's valuation looks much less stretched than FY25 numbers alone suggest.

Strengths

• Asset-light, capital-efficient model with a now-established profitability record
• Diversified by geography (India, US, Europe) and segment (hotels, homes, workspaces, events)
• In-house tech stack that is hard for small hotel owners to replicate
• Clear premiumisation path to higher revenue per booking

Risks

• Travel is cyclical. Demand falls in downturns, and budget travel is price-sensitive.
• Integration risk. Getting value from G6 in the US is a large, ongoing task.
• Take-rate pressure. Revenue growing slower than GBV means OYO needs ever more volume.
• Competition from OTAs, branded hotel chains and other aggregators in every market.
• Brand and quality control across tens of thousands of properties OYO does not own.
• Unlisted-market risk. Prices are indicative, liquidity is limited, and there is no confirmed IPO date.

See the latest indicative price, lot size and company details on the OYO unlisted shares page.

FAQs

Is OYO a listed company? No. Oravel Stays Limited is unlisted. Its shares trade off-market and settle as demat transfers through platforms like ShareSaathi.

How does OYO make money? Mainly through commissions on bookings at partner hotels and homes. It also earns from company-serviced hotels, vacation rentals (Belvilla, DanCenter, CheckMyGuest) and SaaS/management fees.

Does OYO own its hotels? Mostly no. OYO is asset-light: Patrons own or lease the properties, and OYO provides the brand, technology and bookings. It does directly manage some premium properties.

Is OYO profitable? Yes. FY25 EBITDA was about ₹1,100 crore, OYO has reported 12 straight EBITDA-positive quarters, and Q1 FY26 PAT was above ₹200 crore.

What is Motel 6's connection to OYO? OYO acquired G6 Hospitality, owner of Motel 6 and Studio 6, in FY25. It gives OYO 1,500+ storefronts in the USA and Canada.

What is OYO's market cap in the unlisted market? About ₹38,088 crore at ShareSaathi's current indicative valuation. Unlisted prices move, so check the company page for the latest figure.

Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell. Figures are drawn from Oravel Stays Limited's FY2024–25 annual report as summarised in public research, plus provisional Q1 FY26 results, and may be restated. Valuation multiples are indicative and based on ShareSaathi's current market-cap estimate. Unlisted shares are illiquid, prices are not exchange-quoted and investors can lose capital. Please do your own research or consult a SEBI-registered adviser before investing.