OYO's Global Expansion: A Shift from India to International Markets

OYO's Revenue Shift and International Growth

OYO, a significant player in the hospitality sector, has seen a dramatic transition in its business focus, moving away from India, which now contributes less than 12% to its overall revenue, as indicated in its recent IPO filing. The United States has become the company's primary market, surpassing its original base in India. The majority of OYO's revenue now stems from the US, followed by regions such as Europe, the Middle East, and Southeast Asia, highlighting a notable evolution from its initial strategy as a budget hotel chain centered in India.

According to the company's Draft Red Herring Prospectus (DRHP), India's share of revenue has decreased from approximately 30% in previous years. In contrast, OYO's US operations generated a gross booking value (GBV) of ₹12,022.5 crore in the first nine months of FY26, representing 52.4% of the company's total global GBV.

OYO has been actively pursuing growth in international markets, expanding its footprint in Europe with brands like Belvilla, DanCenter, and CheckMyGuest, while also enhancing its operations in the Middle East and Southeast Asia. Recently, OYO made headlines by acquiring G6 Hospitality, a US-based company, to strengthen its presence in North America. Additionally, it significantly expanded its European vacation home segment through the acquisition of the Amsterdam-based Leisure Group.

OYO's parent company, Prism Hotels and Resorts, has submitted an updated draft red herring prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI). This upcoming IPO includes a fresh equity share issue valued at up to ₹6,650 crore, with no existing shareholders participating in an offer for sale. The company may also consider a pre-IPO placement of up to ₹1,330 crore prior to filing its red herring prospectus (RHP).