COMPANY SNAPSHOT

Oravel Stays Ltd—engine behind OYO—is transitioning from a budget hotel aggregator into a diversified global hospitality player, combining technology-driven franchise models with emerging self-operated premium segments (Palette, SUNDAY). With eight consecutive EBITDA-positive quarters, full-year profits, and an IPO underway, the company is strategically positioned for growth across price points and markets.

Began as a budget hotel aggregator called Oravel Stays, rebranded to OYO Rooms in 2013.

Operates an asset-light, franchise/lease-based hospitality model, transforming unbranded properties into digitally-managed, standardized hotels.

Presence in 80+ countries, with more than 1 million rooms across 43,000+ properties in 800+ cities.

Brand & Segment Strategy

• OYO: Continues as the mass-market brand for budget stays.
• Palette: A premium self-operated hotel chain, first launched in Morbi, Gujarat, with plans to expand to 12+ direct-control properties.
• SUNDAY: Another premium/resort brand, already operating in Jaipur, Vadodara, Chandigarh, Manesar, and expanding to Gurugram and overseas markets like the UK and UAE.

Expansion & Growth

• Aiming to open 25 SUNDAY hotels in FY 2025 across Gurgaon, Manesar, Corbett, and other key markets.
• Tapped into business travel hubs such as Morbi’s ceramic cluster, leveraging growth in industrial regions.

Corporate & Market Outlook

• Oravel Stays holds ~85% promoter stake, with DRHP filed and an IPO in preparation.
• Backed by deep-pocketed investors like SoftBank, Lightspeed, and Airbnb.
• Consistently improving profitability and pushing into asset-light premium experiences, boosting investor confidence ahead of public listing.

INDUSTRY OUTLOOK

Market Size & Growth

• The Indian hotel industry is projected to reach ₹1.65 lakh crore (~$20 billion) in FY 2025, growing at a CAGR of ~8–10%.
• Occupancy rates (OR) have stabilized at 65–70%, with Average Daily Rates (ADR) and Revenue per Available Room (RevPAR) surpassing pre-COVID levels.
• Domestic travel and weddings have become core demand drivers, with strong growth in religious tourism, leisure travel, and business travel resuming steadily.

Key Growth Drivers

Domestic Tourism Boom

• Rise of weekend getaways, spiritual circuits (e.g., Ayodhya, Varanasi), and short-haul trips post-pandemic.

Infrastructure Push

• Government investments in airports, highways, and Smart Cities improving last-mile connectivity.

G20 & Global Events Impact

• Events like G20 summits and ICC World Cup 2023 boosted occupancy and international visibility.

Rise of Mid-Scale & Budget Hotels

• Chains like OYO gaining dominance in Tier II/III cities.

Digitalization & Tech

• Contactless check-ins, cloud PMS, AI-based dynamic pricing gaining adoption across segments.

Tourism Revival

• Inbound tourism on the rise again post-COVID, though still trailing domestic volume.
• Government’s “Dekho Apna Desh” and ease of visa efforts supporting international arrivals.
• Medical tourism and eco-tourism are also key long-term tailwinds.

Summary

India’s hotel industry is in a strong growth phase post-pandemic, driven by domestic demand, infrastructure development, and increasing affordability. Mid-scale, budget, and religious tourism are fueling expansion, while digital transformation and asset-light models are shaping the future. The outlook remains positive with stable margins, growing occupancy, and renewed investor confidence.

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