Highlights:
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OYO plans to file its Draft Red Herring Prospectus (DRHP) in November 2025 for a $7-8 billion IPO.
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SoftBank, OYO’s largest shareholder, has assessed market sentiment and supports the upcoming IPO.
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The filing is expected to include OYO’s first-quarter financial performance.
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OYO added over 150 hotels to its U.S. portfolio in the first half of 2025 and plans to add 150 more by year-end.
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The company is planning a new parent brand identity to unify its global portfolio.
OYO Hotels & Homes, the global hospitality chain, is reportedly preparing to file its Draft Red Herring Prospectus (DRHP) in November 2025, aiming for an initial public offering valued between $7 billion and $8 billion. The company plans to present the proposal to its board next week, according to Press Trust of India (PTI).
OYO’s IPO Plans and Market Context
The DRHP filing will mark OYO’s third attempt at going public, following a previous delay earlier in the year. Market volatility and opposition from its largest shareholder, SoftBank, contributed to the postponement of the IPO.
“While we cannot comment on any timelines related to OYO’s DRHP or IPO plans, as these will be guided by OYO’s board of directors and remain at their discretion, OYO continues to evaluate a range of strategic options to drive value for its stakeholders,” a company spokesperson told PTI.
Recent reports indicate that discussions with banking partners have intensified in the past few weeks, with valuation guidance set at $7 to $8 billion. This translates to approximately 25 to 30 times EBITDA, according to sources cited by PTI.
SoftBank’s Role in OYO’s IPO Decision
SoftBank remains a major shareholder in OYO and played a significant role in shaping the company’s IPO timeline. According to a person familiar with the matter, “Over the past few months, SoftBank has engaged with banks such as Axis, Citi, Goldman Sachs, ICICI, JM Financial and Jefferies in London to assess market sentiment. After assessing market feedback, they are now confident in their decision. The board will be approached next week as the company firms up the details and finalises key strategic elements.”
The upcoming IPO is expected to highlight OYO’s first-quarter financial performance, which comes amid a period of strong growth for the hospitality industry, particularly in key international markets.
OYO’s Expansion in the U.S. and Global Markets
OYO has expanded its footprint in the United States, adding more than 150 hotels to its portfolio in the first half of 2025. The company plans to add another 150 hotels by the end of the year, reflecting its continued investment in U.S. markets.
The company is also considering a separate mobile app for its premium and mid-to-premium company-serviced hotels. This segment has seen consistent growth both in India and internationally, and OYO aims to leverage the expansion to enhance brand visibility and customer engagement.
OYO’s Brand Strategy and Parent Identity
OYO is planning a new parent brand identity to unify its global portfolio. Earlier this year, CEO Ritesh Agarwal solicited suggestions on social media for renaming Oravel Stays Ltd, which could become the official name for the group. The rebranding effort aims to provide a cohesive identity across OYO’s growing network of hotels worldwide.
In addition to leading OYO, Ritesh Agarwal serves as chairman of G6 Hospitality, which owns Motel 6 and Studio 6. Agarwal and G6 CEO Sonal Sinha have previously spoken publicly about leadership, operational efficiency, and performance metrics in the hospitality sector.
Looking Ahead: OYO’s Strategic Vision
OYO’s upcoming IPO filing is a critical step in the company’s broader strategic vision. By raising capital through a public offering, the company seeks to support international expansion, accelerate its premium hotel segment, and enhance brand consistency.
The hospitality chain has demonstrated resilience despite market fluctuations, leveraging both investor support from SoftBank and growing demand in key regions like the U.S. With strong financial performance and a clear growth strategy, OYO is positioning itself as a leading global hotel network prepared to capitalize on post-pandemic travel growth.
