April 4, 2025
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About Oravel Stays Ltd (OYO unlisted Shares) you like to study
Latest Results of OYO:
OYO has reported sixfold increase in its net profit for the third quarter of FY25 (October-December). The company’s profit after tax (PAT) stood at ₹166 crore, compared to ₹25 crore in the same period last year.
The company’s revenue for the quarter was ₹1,695 crore, reflecting a 31% year-on-year increase.
EBITDA for the period stood at ₹249 crore, up from ₹205 crore in Q3 FY24.
The gross booking value (GBV) for the quarter was ₹3,341 crore, marking a 33% increase from ₹2,510 crore in the previous year.
For the first nine months of FY25, OYO reported a profit of ₹457 crore, compared to a loss of ₹111 crore in the same period last year. The company attributed its performance to growth in India and the US, along with contributions from Southeast Asia and the Middle East.
OYO has expanded its premium hotel portfolio and made acquisitions, including G6 Hospitality in the US and CheckMyGuest in Paris.
The company has also increased investments in hotel quality and customer experience.
Moody’s has upgraded OYO’s rating from B3 to B2 with a stable outlook. The rating agency expects the company’s EBITDA to reach $200 million in FY25-26.
About the OYO and its asset-light model
OYO, founded in 2012 by Ritesh Agarwal, is a global hospitality technology company that partners with hotels and homeowners to offer standardized accommodation experiences. Operating in over 35 countries, OYO provides a range of services, including budget hotels, holiday homes, and co-working spaces.
Business Model:
OYO’s asset-light model focuses on partnering with existing hotels and property owners, offering services such as property management, technology solutions, and branding. The company operates on a commission-based structure, charging fees for bookings made through its platform. In recent years, OYO has shifted towards premium offerings, investing in upscale properties and focusing on long-term leasehold and management contracts.
Recent Developments:
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Financial Performance: In FY24, OYO reported a gross booking value of Rs.10,846 crore, net revenue of Rs.5,648 crore, and a net profit of Rs.102 crore. The company projects significant growth, aiming for a gross booking value of Rs. 31,704 crore by FY28.
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Acquisitions: In December 2024, OYO acquired G6 Hospitality, the parent company of Motel 6 and Studio 6, for $525 million. This acquisition is expected to contribute an additional Rs.350 crore to OYO’s EBITDA in FY25
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Expansion Plans: OYO plans to invest £50 million in the UK over the next three years to expand its premium hotel portfolio, aiming to create 1,000 jobs in the sector. The company is also focusing on expanding its presence in religious and business centers across India, with plans to add 500 new hotels in 2025.
Strategic Focus:
OYO is emphasizing premiumization, focusing on acquiring upscale properties and enhancing its portfolio with long-term contracts. The company is also investing in technology to improve customer experience and operational efficiency. These strategic shifts are aimed at achieving sustainable growth and profitability in a competitive hospitality market.
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