1851

Founded in 2013, budget hotel service OYO has quickly risen as one of the largest players in India’s hospitality industry. In a short span of six years, the business—which operates on a franchise structure—has skyrocketed to a whopping $10 billion valuation according to <a href="https://www.cnn.com/2019/10/07/tech/oyo-ritesh-agarwal-investment-softbank/index.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion-2711217" target="_blank" rel="nofollow">CNN.</a> The company is majority-backed by <a href="https://www.softbank.jp/en/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion-2711217" target="_blank" rel="nofollow">SoftBank</a>, a multinational conglomerate company that has struggled with two of its marquee investments, <a href="https://fortune.com/2019/10/07/masayoshi-son-softbank-wework-uber/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion-2711217" target="_blank" rel="nofollow">WeWork and Uber Technologies, Inc.</a>&nbsp;&nbsp;OYO entered the U.S. hotel market in February of 2019, and established a home base in Dallas, Texas, <a href="https://www.dallasnews.com/business/local-companies/2019/07/01/indian-hotel-chain-oyo-launches-in-u-s-with-300-million-investment-dallas-home-base/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion-2711217" target="_blank" rel="nofollow">according to the Dallas Morning News</a>. The company operates on an attractive business model which partners with existing hotels, turns them into OYO franchises, and streamlines services such as booking, wifi access and pricing. Essentially, OYO gives each hotel a facelift, offers tech-savvy booking services and takes a cut of the revenue in return. As of July, the company had already signed franchise deals with 50 hotels in 10 states.&nbsp;Much like other franchise models, OYO provides franchisees with access to global brand recognition and existing, more efficient systems. According to Dallas News, OYO’s U.S. hotels have seen occupancy increases of 30% to 40%.&nbsp;"We truly believe that we will be able to build a truly global brand out of India, while ensuring that the business is run efficiently and with a clear path to profitability," said OYO’s 25-year-old founder Ritesh Agarwal. CNN reported that OYO is currently focusing its efforts on increased expansion into Europe and the United States. <a href="https://www.cnn.com/2019/04/01/tech/airbnb-oyo-india-hotel-startup/index.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion-2711217" target="_blank" rel="nofollow">CNN</a> reported that competitor Airbnb has even signed on as an investor.&nbsp;Considering the franchise’s already exponential growth, it is looking like OYO could change the landscape of the budget hotel industry—<a href="https://www.entrepreneur.com/franchises/category/hotel?utm_source=1851franchise.com&utm_medium=article&utm_campaign=indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion-2711217" target="_blank" rel="nofollow">many of which are already franchise brands</a>—as we know it.&nbsp;

India's Biggest Hotel Chain and International Hotel Franchise Is Now Worth $10 Billion

1851 Franchise

CEO of OYO invested another $2 billion into his own company, a startup that takes over existing budget hotels and renovates them for a fee or revenue share.


indias-biggest-hotel-chain-and-international-hotel-franchise-is-now-worth-10-billion

Onigilly Japanese Kitchen

Unlocking the Potential: How Much Can You Earn as an Onigilly Franchisee?

unlocking-the-potential-how-much-can-you-earn-as-an-onigilly-franchisee

Filta Environmental Kitchen Solutions

DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno 

Grease, Grit, and Growth: DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno, Nevada

grease-grit-and-growth-dewitts-ignite-new-chapter-for-filta-environmental-kitchen-solutions-in-reno-nevada

Layne's Chicken Fingers

Layne's Chicken Fingers-50 Unit-Wendy's-Franchisee-June-2025

Why This 50 Unit Wendy’s Franchisee Is Betting on Layne’s for His Next Big Move

wendys-franchisee-expands-with-laynes-chicken-fingers-texas

CapitalSpring

CapitalSpring’s Jim Balis Talks Growth, ROI and the Future of Fast Casual on “Rock My Restaurant”

capitalsprings-jim-balis-talks-growth-roi-and-the-future-of-fast-casual-on-rock-my-restaurant

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

petbar Franchise Costs, Fees, Profit and Data for 2025

petbar-franchise-deep-dive

Design with outline of three houses and people working on laptops within them

Top 10 Low-Cost Home-Based or Mobile Franchises for 2025

low-cost-home-based-mobile-franchises

Franchisee spotlight graphic with photo of Juan & Whitney Fernandez & family, BIGGBY COFFEE logo

From Chiropractic to Coffee: These BIGGBY® COFFEE Franchisees Are Brewing Something New in Troy, Ohio 

biggby-coffee-franchise-coming-to-troy-ohio

India's Biggest Hotel Chain and International Hotel Franchise Is Now Worth $10 Billion

MORE STORIES LIKE THIS