India Daily: Fitch Upgrades Oyo Rating Citing Positive Cash Flow
23 October 2024
Fitch Ratings has revised the outlook of Oravel Stays’ – the parent company of India-based Oyo Hotels and Homes – to “positive” from “stable.” Fitch estimates that Oyo is on track to generate positive (EBITDA) — a measure of profit — and cash flow from operations. “The rating reflects its asset-light business model that benefits from minimal capex needs, largely exclusive distribution rights, pricing control over storefront inventory, fixed revenue share and strong long-term growth potential,” a statement from Fitch said. The ongoing demand recovery in the industry is expected to drive revenue growth of over 20 percent.
Fitch Ratings has revised the outlook of Oravel Stays’ – the parent company of India-based Oyo Hotels and Homes – to “positive” from “stable.” Fitch estimates that Oyo is on track to generate positive (EBITDA) — a measure of profit — and cash flow from operations. “The rating reflects its asset-light business model that benefits from minimal capex needs, largely exclusive distribution rights, pricing control over storefront inventory, fixed revenue share and strong long-term growth potential,” a statement from Fitch said. The ongoing demand recovery in the industry is expected to drive revenue growth of over 20 percent.
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