OYO has announced a major expansion plan focused on India, revealing its strategy to significantly grow its company-serviced hotel portfolio in FY26. As part of this initiative, OYO aims to double the booking revenue share from its company-serviced properties from 22% to 44%, underlining its commitment to strengthening its premium and mid-segment offerings in the country.
Currently, OYO operates over 1,300 company-serviced hotels across India, primarily under popular brands such as Townhouse Oak, Capital O, Palette, and the premium brand SUNDAY. These hotels have emerged as reliable options for travelers seeking quality and affordability. The company plans to increase the number of these properties to 1,800 by FY26, with their footprint expanding from 124 to more than 300 cities across the country. New additions will include emerging destinations like Mohali, Faridabad, and Jalandhar in the north; Cuttack, Asansol, and Darjeeling in the east; Mangalore, Kollam, Port Blair, and Kasaragod in the south; and Bhilwara, Vapi, Junagarh, and Jalgaon in the west.
Speaking about the expansion, Varun Jain, Chief Operating Officer at OYO, said, “This initiative aligns with OYO’s strategic focus for the India market in 2025, which is centered on profitability through enhanced guest experience.” He highlighted that these company-serviced hotels boast a customer rating of 4.6, higher than the company average of 4.0, along with occupancy rates 2.7 times higher and repeat customer rates 1.3 times higher than other properties. The improved performance is attributed to standardised service, better upkeep, and a seamless guest experience.
According to internal data, OYO’s top-rated company-serviced properties include Palette Heritage Scindia Ghat (Varanasi), Super OYO Townhouse Oak Mahadevpura (Bangalore), OYO Townhouse Lakdi Ka Pul (Hyderabad), Palette Patel Nagar (Bhopal) and Super OYO Townhouse Oak Alandur (Chennai).
OYO first launched its company-serviced hotel model in FY23, when it contributed less than 2% to its total booking revenue. Today, it has become OYO’s fastest-growing business segment globally, thanks to its high revenue potential and focus on consistent quality.
The expansion strategy includes targeting leisure destinations, pilgrimage hubs, and high-demand business corridors, where OYO sees an opportunity to form long-term partnerships with property owners. These company-serviced hotels—clearly tagged on the OYO app and website—operate under flexible business models including revenue-sharing or fixed rental agreements.
