Written By: Gouri Ghosh

Do you think this is the ideal moment to get involved in India's expanding hotel sector? In 2025, the Indian hospitality industry is booming and recovering from the pandemic. More people are travelling than ever before, including families, young adventurers, and even professionals who work from anywhere. You know what they want? high-quality, reasonably priced lodging options. For more details on th Oyo Franchise, let us just dive in.

The numbers for the growth of the hotel industry in India are pretty much telling the truth. Indeed, the hotel industry is witnessing about 8.5% growth on an annual basis. What's driving this? Innovation! Advanced Smart booking systems, among others, have changed this game in many ways. For those of you who are ready to ride on this wave, these are the flames of the fire. 

OYO is not a brand; it is a phenomenon. Launched into the market around 2013, it is now the most renowned global brand in hospitality. They have brightened their name by becoming an Indian master with over 23,000 properties in India and continued operations in the 35+ countries. Indeed, it has hit above 65% in the market of budgeted hotels in India. 

This exciting part is that now, OYO has turned into some kind of major franchise model that provides you, as a hotel owner, access to world-class technology for branding and support with OYO along with you making magic happen in terms of awesome stays for guests while elevating your business.

Why You Should Choose the OYO Franchise in India?

In case you're a businessman looking to expand the hotel into bigger things, then getting into the OYO franchise is the way forward. Here are the reasons:

• Trustworthy Brand Name: OYO is known, trusted by millions of travelers. Partnering with OYO makes your property instantly credible and appealing.
• Such a large customer base: There are millions of users of the OYO app and website, and your hotel can get to see that steady stream of guests, bookings as well as occupancy rates.
• Advanced Technology: It is adding not only getting fully automated bookings and dynamic pricing reports along with real-time analytics but also providing cutting-edge technology to make hotel management easy.
• Company on Marketing: OYO provides promotion for your hotel through the use of its app, Website, and prominent online channels. Therefore, all necessary marketing would receive exposure of your property.
• Support - 24 x 7: From guest queries to operational challenges, OYO's team is available for you round the clock to ensure everything runs smoothly for you and your guests.
• High Occupancy : With OYO's stronghold, your rooms should not be empty. Even in the off-seasons, their need-driven strategies fill up your property.
• Industry Expertise : OYO has all this experience that it has collected with years of customer involvement, which has made it a master of what it takes to become successful in hospitality. You enjoy expert advice and tried and tested techniques to grow your business.

What is the OYO Franchise Model ?

Oyo franchise model is the best type of business model through which OYO will bring hotel owners into the circle of branded high-quality stays by building their property as an OYO property. In that, a guest experience can be ensured to be uniform from visibility, increasing revenue for owners.

Tech Driven Operations

Most of the OYO franchise model built on technology would contain highly advanced technology. OYO does offer tools for automated bookings, dynamic pricing, and performance analytics for reasonable hotel partners' management of their business.

Customer Centric Model

This model has truly centered itself on guest satisfaction through quality standards across the board for almost every property. Trusted by a guest for the OYO brand for uniformity are services like 24/7 customer support and easy check-ins.

OYO Franchise Stewardship Agreement

The first step would be an OYO franchise agreement that determines the conditions under which the partnership will be upheld. Upon signing this document, property branding, upgrades, and listing on the platform for booking purposes fall under OYO's domain.

Furnishing Standards

All hotels under the OYO franchise need to fulfill certain standards regarding cleanliness, amenities, and safety standards. Thus OYO makes all properties upgraded and aligned well with its brand standards, and it promotes seamless guest experiences.

OYO's Business Plan: The Company's Growth Prospects in 2025

 OYO's business strategy is expanding, innovating, and partnering, making it the leading carrier in the hospitality industry. Here is how OYO operates and builds its businesses:

• Entering New Markets: Entry into neglected, high-potential areas provides travelers with standard, affordable accommodations while growing the network. OYO today is largely present in Tier-2 and Tier-3 cities in India, where the demand for quality spaces is exploding.
• Building Strategic Partnerships: The strategy of OYO rests on bringing property owners into its fold through the OYO franchise model. Under this construct, the brand provides hotel owners with branding, marketing, and operational support. The strategy also turns out to be mutually beneficial on revenue share and augments OYO's network reach.
• AI and Data Analytics Utilization: Moving with the times, OYO uses AI and data-driven technology for operation optimization and improvement of customer experience. As an example, systems analyze customer behavior for personalized, dynamic pricing, bookings, and operational efficiency. This is how they are ahead of most people in the market now.
• Making Quality Affordable: Every time a new property is added to the network, OYO standardizes it. Thus, every OYO hotel is a venue that is guaranteed to be clean, comfortable, and safe. Greater assurance and trust are built up in the minds of consumers when everything is affordable yet quality.
• Customer-Innovating: OYO continues to innovate improving customer experience. Examples are self-check-in, 24/7 support, and app-enabled services, which meet the changing needs of the customers.

Cost Structure for franchise undertakes and OYO franchise

Before setting up an OYO franchise to tap into this field; you have to know the price . Now an insight into the overall OYO franchise cost in India 

Morover, may very well be based on preliminarily assessing certain pointers that are essential to know before you dig into the investment:

• Number of Franchise Outlets: Currently, OYO has franchises in some locations of less than 10. The company takes extra care in selecting a location and, in return, provides outstanding support to its franchise partners.
• Shop/Unit Area: The area requirement for an OYO franchise is 300-3000 square feet. That is, depending on the localities and size of the property, smaller properties can still find value in the OYO brand and technology.
• Franchise Tenure: The usual franchise tenure of an OYO franchise is generally 5 years. This allows for an ample time frame to develop the property, earn back returns, and grow the business as OYO.
• Initial Investment: Starting an OYO franchise requires an initial investment of anywhere between ₹2 Lakh and ₹5 Lakh. This figure includes setup costs, branding, integration of technology platform into operations, and some initial fund to kick-start the operations.
• OYO Franchise Fee: Franchise fee is part of the total investment, including the cost on training, branding, and access to OYO's platform. This fee ensures you are equipped to hit the ground running.
• Return on Investment: The return on investment an OYO franchise owner receives is remarkable; it can be pegged to yield around a 20% return. In other words, one could most likely expect returns in a very short span given that the venture brings in huge returns on investment in itself.
• ROI Period: Generally, given OYO's tried and tested business model, strong trade presence, and demand from customers, franchise operations partners can expect a confirmed return in the first year of operations. 

How OYO Changed Its Business Model from Aggregator to Franchise

OYO came from owning hotels that aggregated initial listings and those that turned to operate the full experience, asserting control, along with providing better results to hotel owners and customers.

Transition from Aggregator to Franchise

This transformation allows the company to have high affinity with hotel owners, which in turn, has resulted in standardizing the property sectors and maintaining quality assurance across all meal establishments. This gave OYO more control over guest experiences and an increase in hotel performance.

Major Challenge Faced

OYO did have to change gears and push back against certain hotel owners who were used to working in their independent operatory. OYO was burdened with the establishment of technology, the training of staff, and the renovation of properties. However, with convincing assurances and support, OYO did successfully persuade partners to essentially transition to the new model.

What are the Benefits of OYO franchise?

This partnership comes with many pivotal benefits of OYO franchise hard to ignore:

• Property Renovation: This included OYO property, now a high-quality brand hotel, into an ultra-modern hotel with its basic state-of-the-art amenities and glamorous interiors.
• Stress-Free Management: Technology in OYO simplifies each operational activity, provides full transparency in bookings and revenue sales, and manages guest complaints/output.
• Assure Occupancy: Allow you to have 80% occupancy on the daily basis due to the larger customer base and brand image of OYO.
• Finance Intensive : Provides financial counselling to the entire venture with regard to earning profits; it would even do so during the early periods of operations.
• Brilliant Features : Innovation in your room features as well as service innovations keeps your hotel ahead and improves customer experience. 
• Brand Equity: Being part of OYO adds its credibility and also creates loyal customers in the interest of booking as well.
• Guaranteed Returns : OYO secured all its investments with a refund starting from the seventh month of operation.

Overview of the Competitive Landscape of OYO

OYO caters to competing firms such as MakeMyTrip, Goibibo, and FabHotels in the hotel aggregator space, with Treebo Hotels and Radisson on its franchise model.

OYO positions itself distinctly with its unique approach.

Key Differentiators: A direct management mode of operation with full control over quality, price, and guest experience, as opposed to others, wherein the emphasis is just on listing properties.

Key Strengths of OYO:

• Technology: AI and data analytics optimize operations and enhance guest experience.
• Brand: A trusted and well-recognized name plays a very significant role in creating maximum visibility and customer loyalty.
• Market Outreach: Has a wide global presence and extensive digital marketing to ensure high occupancy for franchise partners. 

Conclusion

There are many advantages to working with an OYO franchise, including access to cutting-edge technology, a well-known brand, high occupancy rates, and guaranteed returns. OYO's constant innovation and emphasis on quality demonstrate its dedication to revolutionising the Indian hospitality sector. 

Joining the OYO franchise network with Franchisebazar gives you the chance to differentiate yourself in a crowded market and expand your company with a reputable worldwide brand. 2025 is the ideal year to start if you want to take advantage of the rising hospitality sector. Act now and join together with OYO to enter the hospitality industry of the future!

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.