Indian hospitality technology firm OYO has reported its first-ever annual profit after tax (PAT) of ₹229 crore ($28 million) for the fiscal year 2024 (FY24). The company’s positive financial results follow eight consecutive quarters of adjusted EBITDA growth and reflect ongoing cost optimisation efforts.
OYO’s adjusted EBITDA rose significantly to ₹877 crore ($105 million) in FY24, a 215% increase from ₹277 crore ($33 million) in FY23. Earnings per share (EPS) improved to ₹0.36 ($0.004), compared to a loss per share of ₹1.93 ($0.023) in the previous year.
The company’s future growth prospects are tied to its recently announced acquisition of Motel 6, a U.S.-based economy hotel chain, from private equity firm Blackstone for $525 million. According to OYO, the deal will add approximately 1,500 hotels to its portfolio and is expected to contribute an EBITDA of ₹630 crore ($76 million) in its first full year post-integration.
OYO projects its combined EBITDA to reach ₹2,000 crore ($240 million) by FY26. Independent estimates from Moody’s Ratings suggest OYO’s EBITDA could reach $200 million during FY25-26, supported by the acquisition and improved operational efficiencies. In response to the company’s progress, Moody’s upgraded OYO’s rating to B2 from B3 with a stable outlook.
OYO’s inventory expanded from 12,938 hotels in FY23 to 18,103 by the close of FY24. Revenue from operations, however, remained relatively flat at ₹5,388 crore ($648 million) compared to ₹5,463 crore ($657 million) in the prior year. The company reported a 13% decline in total costs, which fell to ₹4,500 crore ($541 million) in FY24 from ₹5,207 crore ($627 million) in FY23.
OYO, which operates through a tech-enabled platform, attributes its revenue growth to its dynamic pricing system and online distribution strategies. The platform enables seamless bookings, flexible cancellations, and AI-based customer support while enhancing hotel partner visibility through online travel agencies (OTAs).
Focus on the U.S. Market
The Motel 6 acquisition marks a significant step in OYO’s U.S. expansion strategy. Motel 6 properties, averaging 110 rooms each, are expected to increase OYO’s Gross Booking Value (GBV) to approximately $3 billion, with Motel 6 contributing $1.7 billion to OYO’s FY24 GBV of $1.3 billion.
Since its entry into the U.S. market in 2019, OYO has steadily grown its presence to include over 400 hotels across 35 states. The company added nearly 100 U.S. hotels in 2023 and aims to bring an additional 250 properties into its network in 2024.
OYO’s international operations are overseen by Gautam Swaroop, CEO of OYO International. He is supported by Nikhil Heda, Head of Business Development, and Sonal Sinha, CFO of OYO International. The team is responsible for scaling operations, integrating new acquisitions, and driving profitability across markets outside India.
