How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
In short
PRISM, OYO’s parent, earns money from hotel and home stays booked through its platform: it sells the room night itself where it runs the property, and takes a commission where it acts as agent. In FY2026 that produced โน93,579.84 million of revenue on โน306,832.25 million of gross bookings. Profit after tax was โน9,941.83 million, helped by a โน6,776.44 million deferred tax credit.
OYO business model is a mixture of platform and brand, where the company started primarily as an aggregator of homes across India, and it quickly moved to other verticals, from leisure to co-working and corporate travel. In a sort of octopus business strategy of expansion to cover the whole spectrum of short-term real estate.
Two lines dominate. Sale of accommodation services, where PRISM is the principal, was โน50,478.27 million in FY2026; commission from bookings, where it is an agent, was โน30,496.17 million.
OYO revenue by fiscal year, FY2023 to FY2026, from the company's filings. Chart: The Business Engineer.
Gross bookings rose 88.5% to โน306,832.25 million. G6 Hospitality, owner of Motel 6 and Studio 6 and acquired in December 2024, contributed โน141,071.32 million in its first full year.
How PRISM compares
Against its own history, revenue went from โน54,639.45 million in FY2023 to โน93,579.84 million in FY2026, after dipping to โน53,887.89 million in FY2024.
Revenue is a falling share of bookings: 53.70% of GBV in FY2023, 38.41% in FY2025 and about 30.5% in FY2026 (calc), as commission and franchise volume grows. India supplied 16% of FY2026 revenue (calc).
Revenue grew 49.7% and EBITDA rose to โน25,938.38 million from โน10,834.99 million, the fourth straight year of positive EBITDA, the company says.
OYO revenue by line, prior year against FY2026, as reported. Chart: The Business Engineer.
Profit after tax reached โน9,941.83 million. Pre-tax profit was โน3,989.32 million; a โน6,776.44 million deferred tax credit made up the rest. The group rebranded to PRISM in September 2025.
What to watch
Finance cost was โน14,142.47 million in FY2026. The UDRHP-I, filed in June 2026, proposes a fresh issue of up to โน66,500 million.
About 67% of room nights came through non-commissionable channels; the rest pass through intermediaries, and commission and brokerage costs were โน11,173.81 million.
Frequently asked questions
How does OYO make money?
Its parent PRISM sells room nights directly where it runs the property (โน50,478.27 million in FY2026) and earns commissions where it acts as agent (โน30,496.17 million). Total revenue from operations was โน93,579.84 million.
Is OYO profitable?
Yes on reported numbers: profit after tax was โน9,941.83 million in FY2026 and โน2,448.22 million in FY2025. Both years include large deferred tax credits (โน6,776.44 million and โน7,675.58 million).
What is PRISM?
The new name, adopted in September 2025, for Oravel Stays Limited, OYO’s parent. It also owns Motel 6 and Studio 6 (G6 Hospitality) and holiday-home brands Belvilla, DanCenter and CheckMyGuest.
How much of OYO's revenue comes from India?
โน15,043.21 million of โน93,579.84 million in FY2026, about 16% (calc); the rest is earned outside India.
Description: OYO primarily earns revenue through franchise and lease agreements with hotels and property owners. Under these agreements, hotels partner with OYO to use the OYO brand and access the company’s technology, marketing, and distribution network. In return, OYO earns a portion of the revenue generated by these properties. The terms of these agreements may vary, but they often include a combination of upfront fees, recurring fees, and revenue-sharing arrangements.
OYO Wizard Membership
Description: OYO offers a subscription-based loyalty program called OYO Wizard. Customers can subscribe to different tiers of the program, which offer benefits like discounts, complimentary breakfast, and priority customer service. OYO earns revenue from the subscription fees paid by members who join the program to access these exclusive benefits.
Booking Commissions
Description: OYO operates as an online travel agency (OTA) and earns booking commissions on reservations made through its platform. When travelers book accommodations at OYO properties through the OYO app or website, OYO charges a commission fee to the hotel owner. This fee is typically a percentage of the booking amount. Booking commissions contribute to OYO’s revenue.
Additional Services and Upselling
Description: OYO offers additional services to guests, such as in-room dining, transportation, and travel packages. The company can earn revenue by upselling these services to guests staying at OYO properties. These ancillary services provide an additional source of income for OYO.
Advertisement and Marketing Services
Description: OYO may offer advertisement and marketing services to partner hotels and property owners. This can include promoting partner properties through OYO’s marketing channels and featuring them prominently on the OYO app and website. Hotel owners pay fees for these marketing services, which help them increase their visibility and bookings.
Property Management Services
Description: OYO may offer property management services to partner hotels to help improve their operations. These services can include staff training, property renovations, and technology integration. OYO charges fees for these services, and the revenue generated contributes to its income.
Challenges and Competition
Description: OYO faces challenges related to competition in the hospitality and hotel booking industry, both from traditional hotel chains and other online travel agencies. Ensuring consistent quality and standards across its properties, addressing customer concerns, and expanding its global presence are ongoing challenges. Maintaining profitability amid varying property occupancy rates can also be a challenge.
Future Growth Strategies
Description: OYO’s future growth strategies may involve: – Property Acquisition: Increasing the number of properties under OYO’s brand. – Technology Investment: Investing in technology to enhance the guest experience and property management. – Service Diversification: Expanding into related services, such as vacation rentals and coworking spaces.
Octopus strategy: OYO multi-brand and multi-product strategy in action
OYO, thanks also to its $2.4 billion in fundings, managed to keep expanding its business strategy to comprise more products (to cover several markets, from traditional rental to vacation and co-working) and brands.
This sort of octopus strategy has seen the company quickly expanding over the years, by splitting its arms in several directions, to cover all the possible facets of the short-term real estate market.
OYO Townhouse: 25% Hotel, 25% Home, 25% Cafe and 25% Store
It gives us great pleasure to introduce you to OYO Townhouse. Operating as 25% Hotel, 25% Home, 25% Cafe and 25% Store, these hotels are slated to become to the social hotspot of their neighbourhood. Every single element โ from the breakfast menu to the booking process โ has been re-engineered to deliver higher quality and better value. Also, unlike the lego-brick approach of traditional hotel chains, every OYO Townhouse is designed to complement its neighbourhood. The tastefully done properties are staffed with highly trained managers to deliver world-class and modern hospitality specially designed for millennials.
Thought for the higher end of the market OYO Townhouse, is steered toward a boutique hotel format. The company purchases real estate and tranforms it into boutique hotels, branded OYO Townhouse, which the company likes to call “โthe friendly neighborhood hotelโ or “a unique combination of a hotel, home, merchandise store and cafรฉ and is targeted at millennial travellers aspiring premium economy accommodations.“
As the company pointed out this is the part of the business targeting higher-income millennials, with six features that make those Townhouses different from the other products (OYO emphasizes them as “6 leayrs of innovation:”
Smarter Rooms,
Smarter Spaces,
Smarter Menus,
Smarter Buildings,
Smarter Service,
Smarter Locations
That is how the formula, that OYO claims, improves over the old hotel formula, was used as part of the initial playbook to expand all over India.
I am excited to introduce OYO Home, our newest initiative in continuing to provide high quality living spaces at diverse locations at a range of prices. OYO is partnering with hundreds of owners across India to unlock, maintain and manage all forms of homes. Everything from villas, apartments, bungalows to farmhouses. Everywhere from Goa, Manali, Shimla, Nainital to Pondicherry.
As the company highlighted back then, there were two main pain pointes t o be solves:
Guests: “concerns regarding infrastructure quality and the check-in/check-out experience.”
Hosts/home-owners: “The lack of a trusted partner who will take over the responsibility of maintaining the home.”
At OYO Vacation Homes, we are utilizing the power of data to understand our customers better. Carefully analyzing customer behaviour has given us insights that are significant for business growth. With the help of data analytics, we are able to solve some of the biggest hurdles faced by homeowners, for example, seasonality or low bookings during certain times of the year. Itโs data that has helped us understand the impact of a swimming pool or sauna on the occupancy of a particular home. It is also data that highlights that pet-friendly homes witness higher occupancy!
The brands part of the OYO Vacation Homes varying from self-service to full-service.The services offered by OYO Vacation Homes
This segment of the business primarily comprises brands dealing with vacation renal management services, and here OYO expanded also in Europe.
SilverKey: for corporate travelers
The key features of the SilverKey corporate accommodations as recounted by OYO (source: OYO Official Blog)
Back in April 2019, OYO highlighted “At OYO, our mission is to provide the perfect space in every place. Corporate travel segment is a key engine of our growth for the year and we are stepping up engagement in this segment.”
OYO Workspaces: co-working segment
After the acquisition of Innov8, OYO entered also the co-working industry with three main products:
Innov8 โ “Premium Workspace Designed To Help You Create and Innovate“
Powerstationโ “Vibrant yet professional Coworking Solutions” (fully managed by OYO
This brand targets “new age corporate travelers who are in search for quality and affordable accommodations while meeting their professional and personal requirements.“
Other products in leisure, corporate travel, and student housing
Other products comprise:
Palette primarily covering the leisure segment.
Collection O as the product focusing on the higher-end of the corporate travel space.
OYO LIFE, targeting millennials and student housing.
OYO end-to-end experience
OYO objective is to cover the hospitality experience end-to-end. Image Source: Official OYO Blog
A lot goes into delivering what we promise and we never shy away from going the extra mile to give the guests an unforgettable experience.
The OYO Team
The process of standardization of the experience starts with what OYO claims to be a 150 point checklist that goes from the booking experience to the support center and the on-ground Cluster Managers, ready to solve any problem it might arise during the experience of guests.
Up to other initiatives like the “Captain.”
OYO and the era of Hyper Agile
Ajay Shrivastava, former head of technology at OYO, back in 2016coined the term “Solver Team” as a sort of Hyper Agile approach based on his experience at OTO.
As he highlighted:
Early last year at OYO, we experimented a new model of collaboration in software development called the “Solver Teams”. Over the year we shipped dozens of products and hundreds of features using this methodology. It’s an impactful execution mechanism, that churns out multiple features every week at a very high speed, while having a positive synergy and camaraderie in environment across business, product, design and technology teams.
As he highlighted in the old model, the starting point of a product development would start from the business going down product, design, engineering and testing/release.
The issue with this sort of approach is well explained in the graphic below by
Source: Ajay Shrivastava, on “Solver TeamsโโโHyper Agile & Well Oiled Execution”
In a Solver Team approach (or hyper agile) self-sufficient teams come together, so that different functions are comprised in the same team:
Solver Team (ST) = Business + Product + Design + Tech members. Self-sufficient group of experts from different functions who work together on a specific problem end-to-end.
As highlighted by OYO engineering team back in 2018, they launched an important update related to the Hotel Rating:
When a user visits the OYO Mobile App, Mobile or Desktop Website, hotel ratings are displayed alongside all the properties with essential details on the hotel listing page and hotel details page. If the total count of rating is less than 10, then a โNewโ tag appears on the hotel. Upon clicking on a hotel rating, it expands to show a more detailed review and displays a happiness index (out of 100) on amenities and core promises. Hotel ratings are collected post check-out via mobile app, customer care and emails.
For aggregator websites like OYO, mechanisms like Hotel Ratings are crucial as they flipped the market upside down. Where conventional rating mechanisms, in the previous era (where digital business models didn’t take over yet) were primarily top-down.
Large scale algorithms and platforms made consumers the raters, thus enabling a bottom-up approach, with a social-media mechanism, and user-generated content, repackaged in the form of synthetic ratings (what OYO calls the happiness index) that enable the platform to show hotel ratings at scale.
OYO in numbers
OYO has been using over the years an aggressive playbook in terms of expansion. First, in India, then globally. This aggressive expansion calls for substantial growth in revenues, but also a growth in net losses (as we’ll see). And as the pandemic hit, while the company still had over a billion in cash at the bank as of 2019, it will have to cut more and more on expansion plans to fit the current market scenario.
OYO growth channels
Total demand and how it was broken down in 2019. (Source: OYO Official Blog)
Among the key channels the company uses to growth, and to make its business stable over time we have repeat customers, organic and paid.
OYO revenue generation
In 2019, revenues increase 4.5x over 2018, reaching over $951 million:
The OYO Rooms Revenue Growth from 2018, to 2019 (Souce: OYO Official Blog)While Gross margins increased from 2018 to 2019, as you’ll see also net losses escalated (Source: OYO Official Blog)OYO Recorded $335 million in losses as of 2019, as it continues with its aggressive expansion playbook, across the world. (Source: OYO Official Blog)
Consolidated net losses increased from 25% in 2018 to 35% in 2019. The increase in net loss was primarily due to OYO global expansion plans.
As the company moved from a growth playbook focused on India, to expand globally. The expansion in new markets also resulted and will result further in overhead costs that will be amortized over the years.
(Source: OYO Official Blog)
This expansion strategy, which worked exceptionally well in times of market expansion, and available cash for growth, it’s now backfiring as the pandemic hits, especially business models built on short-term real estate rents.
OYO offers budget-friendly accommodation options for travelers, making travel more accessible to a broader audience. Its value proposition lies in providing comfortable and standardized hotel rooms at economical prices, catering to the needs of budget-conscious travelers. OYO maintains strict quality standards across its network of hotels, ensuring that each property meets predefined criteria for cleanliness, safety, and comfort. By guaranteeing a consistent level of quality, OYO aims to instill confidence and trust among travelers, enhancing their overall experience. Additionally, OYO provides a user-friendly platform and mobile app that enables travelers to discover, book, and manage their accommodations seamlessly. With a wide range of properties available in various locations, OYO offers convenience and accessibility for travelers seeking hassle-free accommodation solutions. Leveraging technology, OYO streamlines operations and enhances the guest experience with features such as online booking, digital check-in, and in-app communication, reflecting its commitment to innovation and customer convenience.
Affordable Accommodation
Quality Assurance
Convenience and Accessibility
Technology Integration
Revenue Model:
OYO generates revenue through franchise fees charged from independent hotel owners who join its network. These fees cover branding, marketing, and access to OYO’s technology platform. The company also earns a commission on each booking made through its platform, typically a percentage of the booking value. Additionally, OYO offers ancillary services to hotel partners, such as property management and housekeeping, generating additional revenue. Revenue from OYO Rooms, the company’s branded properties, complements its franchise and commission-based income streams.
Franchise Fees
Commission on Bookings
Additional Services
OYO Rooms
Marketing Strategy:
OYO invests heavily in digital marketing channels, including online advertising, SEO, and social media marketing, to promote its brand and attract customers. Strategic partnerships with travel agencies, airlines, and OTAs expand its reach and access new distribution channel โ as explored in how AI is restructuring the traditional value chain โ s. Customer loyalty programs and referral incentives encourage repeat bookings and word-of-mouth referrals. OYO adopts a localized marketing approach to tailor its messaging to specific geographic regions and target markets.
Digital Marketing
Partnership Marketing
Customer Loyalty Programs
Localized Marketing
Distribution Channels:
OYO operates its own online platform and mobile app for travelers to browse and book accommodations directly. It partners with leading OTAs such as Booking.com and Expedia to expand its distribution reach. Collaboration with travel agents and tour operators offers accommodations as part of packaged travel itineraries. Direct sales efforts target corporate clients and event organizers, promoting accommodations for corporate travel and group bookings.
OYO Website and App
Online Travel Agencies (OTAs)
Travel Agents and Tour Operators
Direct Sales and Corporate Partnerships
How AI Is Changing This
Oyo has fundamentally transformed its business model by leveraging AI-powered dynamic pricing algorithms that automatically adjust room rates based on real-time market conditions. The company’s proprietary AI system analyzes over 200 data points including local events, weather patterns, competitor pricing, historical booking trends, and demand forecasting to optimize pricing every few minutes. For instance, during the 2019 Kumbh Mela festival in Prayagraj, Oyo’s AI detected the massive influx of pilgrims weeks in advance and automatically increased room rates by 300-400% in nearby properties while simultaneously alerting hotel partners to prepare additional inventory. This AI-driven approach has shifted Oyo from a traditional hospitality model to a technology-first platform where data science determines profitability. The system has reportedly increased revenue per available room (RevPAR) by 25-30% across Oyo’s portfolio, demonstrating how artificial intelligence has become central to their operational strategy and competitive advantage in the budget hospitality sector.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
