OYO to Achieve INR 1,550 Cr EBITDA in FY25, Says Ritesh Agarwal.

Hospitality giant OYO is on track to achieve an EBITDA of INR 1,550 Cr for the ongoing fiscal year (FY25), thanks to its recent acquisition of US-based G6 Hospitality, according to founder Ritesh Agarwal. Speaking at the ‘TiEcon Mumbai 2025: Dhandha First’ event, Agarwal revealed that OYO initially targeted an EBITDA of INR 1,200 Cr for FY25. However, with G6 Hospitality’s contribution, an additional INR 350 Cr will push the total EBITDA to INR 1,550 Cr. OYO acquired G6 Hospitality, the parent company of budget hotel chains Motel 6 and Studio 6, for $525 million (approximately INR 4,580 Cr) in an all-cash deal in December.

While Motel 6 is already a well-established brand in the US, OYO plans to further strengthen its presence and elevate the brand’s offerings. This announcement follows Agarwal’s prediction that OYO will achieve a net profit of INR 1,100 Cr in the next fiscal year. He also projects that G6 Hospitality will contribute INR 690 Cr to OYO’s total EBITDA of INR 2,000 Cr in FY26.

Agarwal further noted that OYO generates half of its domestic revenue from its flagship ‘Townhouse’ hotels, which are growing at a double-digit rate every month. The company is focused on becoming a top player in the Indian hospitality market. "We aim to lead in both quality and profitability in every segment we operate in," he stated. OYO also views the Indian spiritual tourism market as a major growth opportunity in the future.

Founded in 2012 by Agarwal, OYO offers a wide range of accommodations, including holiday homes, casino hotels, coworking spaces, budget hotels, and corporate stays. The company has raised approximately $4.5 billion in funding, with investors such as SoftBank Group and Microsoft backing it. With over 10,000 properties managed across India, OYO has expanded its presence to more than 35 countries across Europe, Southeast Asia, and North America.

Despite its rapid growth, OYO has faced regulatory and legal challenges in key markets, had to restructure loans, and withdrew its initial public offering (IPO) draft papers twice. Reports earlier this month indicated that Agarwal is under pressure from investors, including Mizuho Financial Group, to take OYO public by October. With a looming deadline to repay $383 million in debt, the company has fast-tracked its IPO plans. OYO has experienced a remarkable turnaround, reporting its first-ever annual profit of INR 229.5 Cr in FY24, compared to a loss of INR 1,286.5 Cr in FY23.

In February, it was reported that OYO’s net profit surged nearly sixfold to INR 166 Cr in Q3 FY25, up from INR 25 Cr in the same quarter the previous year. Revenue also rose by 31%, reaching INR 1,695 Cr during the quarter, compared to INR 1,296 Cr in Q3 FY24.

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