Introduction
Incorporated on 21 February 2012, Oravel Stays Limited owns and operates the popular hospitality start-up called the OYO Rooms. OYO is a global platform that enables people to find and book affordable and trusted accommodation that is stacked with facilities and technologies to make their customers feel at home and ease their operations. Oyo Rooms provide its customers with facilities such as air-conditioned rooms, breakfast, WiFi, washroom, cable television, spotless linen, and more. Since its incorporation, the company focuses on tackling the key pain points of both the patrons (hospitality owners, lessors, and operators of storefronts listed on the platform) as well as their customers and resolving them to give a smooth experience to everyone. This unique business model helps patrons to figure out and transform the unbranded and under-utilized hospitality assets into branded ones and generate higher revenue by offering customers access to high-quality accommodations at compelling prices.
Fundamentals
Total Shares
9.6Cr
P/E
183.33
Book Value
₹ 1.29
Face Value
₹1
EPS
₹ 2.15
ISIN
INE561T01021
Sector
Hospitality
Dividend Yield
0 %
P/S
4.93
Total Income
₹ 5541.6 Cr
P/B
41.1
Market Capitalisation
₹ 40452.5 Cr
Company Overview
Oravel Stays Limited (OSL) operates an online portal ‘oyorooms.com’. As per its annual filings, OSL is engaged in the business of activities of marketing and promoting services for visitors by providing information and assistance to organizations to locate accommodation, convention centers and entertainment venues and other travel-related reservation services including for transportation, hotels, rest restaurants, and car rentals. It is also engaged in the operating technology-enabled branded network franchisee of budget hotels and distributing them through its online and offline distribution channels.
OYO Hotels & Homes is a renowned hospitality company that has revolutionized the hotel industry with its innovative approach to affordable and comfortable accommodations. Founded in 2013 by Ritesh Agarwal, OYO has rapidly expanded its presence across the globe, operating in over 80 countries and managing more than 1.2 million rooms. The business offers consumers the option to choose rooms and living areas that best fit their needs at an affordable price.
Timeline
2013: Opens first oyo in Gurugram
2014: Received Series-A funding
2015: Launch of oyo app Expanded to 100 cities and crossed 10000 rooms
2016: First overseas expansionin Malaysia Hit 1 million checkin for the first time
2017: Launch of oyo townhouse
2018: Expansion outside of Asia-UK Expanded to China and Indonesia
2019: Launched in US, Europe and Middle East
2020: Acquired @Leisure to enter vacation home business across 40 countries
2021: Launched OYO360, a self onboarding platform for patrons.
Business Model
Earlier Model: OYO’s initial business model was to pre-book hotel rooms at a discounted price then sell these rooms on their platform, usually at a higher price. Their revenue was the difference between their price and the price they sold the room for.
Current Model: Slowly OYO has shifted their focus from being an aggregator to managing the entire hotel property.
Oyo presently sells the complete inventory of hotels under its very own branding. This is beneficial for hotels, listed on the OYO platform gives them more traction and helps them acquire more business. And as commission Oyo charges 22% from its hotel partners.