Financial Express • March 24, 2025
Hospitality company OYO is expecting Rs 1,100 crore in net profit for the next financial year 2025-26, sources said based on the projections shared by Founder Ritesh Agarwal with the company’s leadership on Wednesday, PTI reported. The EBITDA for the IPO-bound company is estimated to be Rs 2,000 crore for the same period on the back of its last year’s acquisition of US-based G6 Hospitality, which operates the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million.
Motel 6 is expected to contribute Rs 630 crore in EBITDA in the coming fiscal – the first full year of its integration, sources said.
The startup jumped into the green with a net profit of Rs 114 crore during FY24 after a net loss in FY23. Its operational revenue, however, dropped by 15 per cent to Rs 1,112.83 crore from Rs 1,312.61 crore during the previous year.
OYO’s Q3 results reported in February this year saw over 6x growth in net profit to Rs 166 crore in comparison to Rs 25 crore during the same period last year. Revenue too had increased by 31 per cent for the quarter to Rs 1,695 crore.
Moreover, its company-serviced hotels business had recorded 250 per cent growth within a year of its launch. OYO had added 700 company-serviced hotels since its launch in September 2023, exceeding its target of 200 hotels.
OYO also expanded its European presence through strategic acquisitions under the OYO Vacation Homes (OVH) brand. The company has more than 184,000 properties across Europe, the US, the UK, Southeast Asia, and the Middle East.
The company, however, is now speeding up its IPO plans before October 2025 as the deadline for repayment of $383 million nears that founder and CEO Ritesh Agarwal borrowed, Bloomberg had reported on March 04.
Agarwal had reportedly borrowed $2.2 billion in 2019 to increase his stake in the organisation and strengthen his control. However, the loan deal was restructured in 2022 and the first installment of the repayment is pending.
The creditors, including Mizuho Financial Group Inc., seek repayment in case the company doesn’t IPO by October, even as they can delay the repayment till 2027 if OYO lists this year.