The OYO Business Model of Franchised Hotels and Homes
How OYO's parent PRISM earns from hotels, homes and franchises.
Key Takeaways
- OYO's parent is PRISM, formerly Oravel Stays.
- FY26 revenue from operations was ₹9,358 crore.
- FY26 profit after tax was ₹994 crore, including a ₹678 crore deferred tax credit.
- Gross booking value rose 88.5% to ₹30,683 crore in FY26.
- PRISM has SEBI clearance for an IPO and was reported in October 2026 to cut the fresh issue to up to ₹3,350 crore.
The OYO business model works by giving hotel and home owners a brand, technology and operating support, and earning revenue share, commissions and franchise fees in return. OYO's parent company, PRISM (formerly Oravel Stays), reported revenue from operations of ₹9,358 crore and profit after tax of ₹994 crore for FY26.
The profit figure includes a deferred tax credit of ₹678 crore. PRISM has SEBI's clearance for an IPO, and in October 2026 it was reported to be cutting the fresh issue from ₹6,650 crore to up to ₹3,350 crore.
OYO at a glance
| Item | Detail |
|---|---|
| What it does | Hotels and homes run on franchise and revenue share terms under OYO, Motel 6 and Studio 6 |
| Parent company | PRISM, formerly Oravel Stays |
| Founder | Ritesh Agarwal |
| FY26 revenue from operations | ₹9,358 crore |
| FY26 profit after tax | ₹994 crore, including a ₹678 crore deferred tax credit |
| FY26 gross booking value | ₹30,683 crore |
| Scale on 31 December 2025 | More than 24,000 hotels and about 1.25 lakh homes |
| Reported IPO valuation target | $7 billion to $8 billion |
| IPO status | SEBI cleared, updated papers filed in June 2026 |
What OYO does
OYO sells stays through hotels and homes that are mostly owned by other people. The owner keeps the property, and OYO supplies the brand, the booking technology and operating support. PRISM is the group's corporate name since September 2025, while OYO remains the consumer brand for budget and midscale stays.
In December 2024 it completed the purchase of G6 Hospitality, the franchisor of Motel 6 and Studio 6 in North America, for $525 million. On 31 December 2025 it had more than 24,000 hotels and about 1.25 lakh homes.
How OYO makes money from owners and franchisees
The group describes itself as asset light. It provides technology, branding and operating solutions to third party property owners and is paid through revenue share or franchise fees. For the G6 brands, Motel 6 and Studio 6, income comes as franchise royalties.
Gross booking value is the company's measure of total bookings made through its platforms and brands. In FY26 gross booking value was ₹30,683 crore, up 88.5% from ₹16,279 crore in FY25. G6 Hospitality accounted for ₹14,107 crore of it, up from ₹3,529 crore in FY25, as FY26 was its first full year with OYO.
OYO revenue model in numbers
Revenue from operations rose 49.7% to ₹9,358 crore in FY26. EBITDA was ₹2,594 crore, more than double the previous year.
OYO's Business Model Canvas
Revenue and profit over two years
Revenue from operations was ₹6,252.8 crore in FY25 and ₹9,358 crore in FY26. Profit after tax was ₹244.8 crore in FY25 and ₹994 crore in FY26. The FY26 profit includes a deferred tax credit of ₹678 crore.
OYO's journey so far
| When | What happened |
|---|---|
| December 2024 | Completes the $525 million purchase of G6 Hospitality |
| September 2025 | Oravel Stays renames itself PRISM |
| December 2025 | Files draft IPO papers with SEBI through the confidential route |
| June 2026 | Receives SEBI's observation letter and files updated papers for a ₹6,650 crore fresh issue |
| August 2026 | Reports FY26 results |
| October 2026 | Reported to cut the fresh issue to up to ₹3,350 crore |
Who owns OYO
Founder Ritesh Agarwal held 26.71% of PRISM in the June 2026 updated draft papers, through his own holdings and RA Hospitality Holdings. The IPO is a fresh issue only, so no existing shareholder is selling shares in it.
OYO IPO and the parent company
The OYO parent company filed updated draft papers in June 2026 for a fresh issue of ₹6,650 crore with no offer for sale. The papers allow a pre-IPO placement of up to ₹1,330 crore, which would reduce the fresh issue. About ₹4,987.5 crore was meant to repay or prepay borrowings. In October 2026 PRISM was reported to be cutting the fresh issue to up to ₹3,350 crore. Reports have put the valuation it is targeting at $7 billion to $8 billion.
Who OYO competes with
OYO operates in the stay market alongside other hotel brands, online booking platforms and home rental marketplaces. The IPO papers describe a legal dispute with Zostel, and an adverse ruling could affect PRISM's shareholding.
Challenges OYO faces
The Zostel dispute is listed as a risk in the IPO papers. In the June 2026 papers, ₹4,987.5 crore of the ₹6,650 crore fresh issue was meant to repay or prepay borrowings. FY26 profit includes a ₹678 crore deferred tax credit.
Conclusion on the OYO business model
OYO's parent PRISM earns by giving property owners a brand, technology and operating support in return for revenue share, commissions and franchise fees. Motel 6 and Studio 6 add franchise income in North America.
In FY26 it reported revenue from operations of ₹9,358 crore, profit after tax of ₹994 crore and gross booking value of ₹30,683 crore.
