OYO to expand company-serviced hotels in FY26; segment aims to contribute half of booking revenue

Hospitality technology platform OYO said it plans to significantly expand its company-serviced hotels in FY26, aiming to double its contribution to total booking revenue from the current 22% to 44%.

This move is part of the company’s broader strategy to strengthen its presence in India through a focus on higher-quality, standardised accommodations.

OYO currently operates over 1,300 company-serviced properties in India, primarily under the Townhouse, Townhouse Oak, Capital O, Palette, and SUNDAY brands. These properties—managed directly by OYO—have shown stronger performance metrics compared to its franchised hotels, including higher occupancy rates and guest ratings.

According to internal data, company-serviced hotels average a customer rating of 4.6, compared to the overall average of 4.0, and maintain occupancy levels 2.7 times higher than other segments.

In FY26, OYO aims to expand this segment to 1,800 hotels across more than 300 cities, up from 124 cities currently. New locations include a mix of Tier-II and Tier-III cities such as Mohali, Cuttack, Mangalore, Port Blair, Bhilwara, and Jalgaon. The expansion will target leisure destinations, pilgrimage sites, and key business hubs—areas where OYO sees sustained demand and willingness among property owners to engage in long-term arrangements.

OYO introduced the company-serviced model in FY23, when it contributed less than 2% to the company's total booking revenue. Since then, the segment has grown rapidly, becoming the fastest-growing vertical in OYO’s portfolio.

“These hotels are part of our broader strategic focus to improve profitability by enhancing guest satisfaction,” said Varun Jain, Chief Operating Officer at OYO. “The better performance of this segment is tied to stronger service delivery and operational consistency.”