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

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Fresh Coat

Photo of Fresh Coat vehicle with ladders on top

The Rise of Home Improvement Franchises: Why Now Is the Time to Invest

why-invest-home-improvement-franchise-fresh-coat

HomeTeam Inspection Service

Photo of HomeTeam inspector in red polo and khaki pants, walking by branded vehicle

Real Estate Today: Behind the Drywall: The Truth About Home Inspections

purpose-of-home-inspection

Dog Training Elite

Dog Training Elite Franchise - DTE - National Service Dog Month - 1851 Franchise

Celebrating Service Dogs: Why Proper Training Changes Lives — And How Dog Training Elite Is Leading the Way

dog-training-elite-national-service-dog-month

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

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

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

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

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

MORE STORIES LIKE THIS