Oyo founder and chief executive officer (CEO) Ritesh Agarwal is set to increase his stake in the hospitality chain with an investment of Rs 550 crore, as the Gurugram-headquartered company eyes global expansion.
Agarwal is set to buy more than 12.9 crore shares at Rs 42.60 apiece, taking his stake from 30 percent to 32 percent. The investment values Oyo at close to Rs 32,000 crore, sources said.
The funding will help in financing the recent acquisition of US-based hospitality chain Motel 6 and Studio 6. The company in September announced the acquisition of G6 Hospitality, a lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million, in an all-cash transaction.
Oyo has been expanding its footprint in the United States since its launch in the region in 2019 and operates over 320 hotels across 35 states. In 2023, it added nearly 100 hotels to its US portfolio and aims to add around 250 hotels in 2024.
Agarwal’s proposal will be taken up during the company’s extraordinary general meeting (EGM) on December 9 as a special resolution.
Agarwal is set to buy more than 12.9 crore shares at Rs 42.60 apiece, taking his stake from 30 percent to 32 percent. The investment values Oyo at close to Rs 32,000 crore, sources said.
The funding will help in financing the recent acquisition of US-based hospitality chain Motel 6 and Studio 6. The company in September announced the acquisition of G6 Hospitality, a lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million, in an all-cash transaction.
Oyo has been expanding its footprint in the United States since its launch in the region in 2019 and operates over 320 hotels across 35 states. In 2023, it added nearly 100 hotels to its US portfolio and aims to add around 250 hotels in 2024.
Agarwal’s proposal will be taken up during the company’s extraordinary general meeting (EGM) on December 9 as a special resolution.
The company recorded a net profit of Rs 158 crore in the September quarter, up from Rs 132 crore in the June quarter. Its net profit in the first six months of FY25 stood at Rs 291 crore against a net loss of Rs 91 crore in the year-ago period.
Oyo Q2 revenue came in at Rs 1,578 crore, a 12 percent sequential growth. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) was Rs 266 crore, up 27.4 percent from Q1.
Earlier in this year Oyo reported its first-ever profit after tax (PAT) of Rs 229 crore in FY24. The company also reported eight consecutive quarters of positive adjusted EBITDA. Oyo’s adjusted EBITDA grew by 215 percent to reach Rs 877 crore in FY24, up from Rs 277 crore in the previous year.
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