OYO bets big on premiumisation, targets 25% annual growth with India at the forefront

After years of aggressive expansion, OYO has shifted gears — from being a loss-making startup to a profit-generating, premium-focused global hospitality player. Founder and CEO Ritesh Agarwal says the company is now doubling down on profitable growth, driven by a three-pronged strategy of premiumisation, deeper international expansion, and an “India-for-the-world” product play.

OYO’s broader goal for the next three years is clear: continue compounding what has worked. “We’re now able to fund growth with internal accruals rather than relying on external capital,” Agarwal points out.

India, meanwhile, is expected to outpace global growth for OYO over the next three to four years. “The domestic travel demand far supersedes any other market in the world,” Agarwal explains, citing a mix of booming domestic tourism and the rise in outbound Indian travellers.

The company, which grew 25% globally in top-line revenue last year, expects to maintain this growth trajectory. “India should grow faster than the global average,” he adds, underscoring that profit growth will likely exceed revenue growth due to OYO’s fixed-cost-heavy model