How to Take an OYO Franchise in India?

OYO rooms were founded by Ritesh Agarwal in 2013 and have since become the country’s most prominent hospitality firm in a short period. Over 230 Indian cities, as well as Malaysia and Nepal, are within its sphere of influence. The company aims to become the world’s most trusted and preferred brand. Let’s check out how to take an OYO franchise in India below.

How to Take an OYO Franchise in India
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The OYO app has transformed the business by allowing consumers to browse and book rooms, order room service, and check for neighboring OYO hotels. As a managed hotel brand targeted at urbanites and the next generation of lodgers, OYO established Townhouse in 2017 as a social hotspot. The Townhouse would be a fantastic option for a traveler looking for a high-end hotel with exciting amenities and a convenient location.

Investment needed for franchising with OYO

To open an OYO Townhouse franchise, aspiring entrepreneurs must spend a total of INR 1 crore-2 crore in addition to their operating capital and investment resources. However, in line with the company’s promises, the payback time for the franchise would be reduced as the franchise gets an ROI of 40%.

OYO franchise business model

As a hotel aggregator, the OYO Rooms business model is similar to an inn. It doesn’t matter to the customers whether the service is provided by OYO rooms or a third-party service provider. OYO is similar to Uber, in that it provides rooms with an established level of quality and pricing. Unlike Airbnb, OYO Rooms’ business model doesn’t simply focus on the discoverability of its partners but also on the standardized nature of the service it provides to its customers. OYO Rooms provide a high-quality hotel option for customers in better locations around India. Influenced inns to cooperate under their name, they partnered with them.

OYO franchise income model

OYO Rooms rent out a portion of a hotel’s rooms. Institutional amenities like free WiFi and spotless restrooms are all part of the package in these rooms. The OYO Rooms website/application makes these rooms available to potential customers. OYO Rooms charge a fixed price to those who want to use them. Oyo presents itself in several cities and must provide enormous discounts to customers.

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OYO rooms suffer due to these rebates, which often result in expenses that are even lower than the hotel rates. The expenses also include the enormous expenditures of limited-time activities to raise the brand’s perceived value among customers and remuneration.

How to take an OYO franchise in india: Step by step guide

Step 1: Registration

Visit the OYO website and fill out a simple OYO rooms registration form with your name in the “list your property area” and your mobile phone number and city of residence. Tap on “Become an OYO” to submit this form and begin partnering with OYO Rooms. You can also email or give OYO franchise contact number a call to register for OYO rooms: +91 70530 70530.

Step 2: Discussion with OYO team

A representative from the OYO rooms team will contact you after you fill out an application form, send an email, or give them a call to discuss becoming a partner. They will go over the terms and conditions with you, have you provide proof of your address and identification, and have you sign an OYO rooms partnership agreement.

Step 3: Listing

Your commercial property, hotel, or home will be listed on the OYO rooms app and website as soon as the following formalities are completed, and you will be able to accept guests via OYO rooms.


Franchisees with OYO have access to the same services as other franchisees, including induction training and professional help from the head office in setting up the franchise.

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Agreement duration

OYO and the franchise will pursue a five-year business arrangement that may be renewed at the end of the term.

The pricing model of OYO

Customers of OYO may book Contracted Rooms via the OYO Platform, OTA, and any other online or offline channel at a price set by OYO, and the OYO Patron is responsible for completing the reservations at that price. It’s understood and agreed upon by the OYO patron that such pricing is dynamic and subject to change and that OYO’s method of determining the price is acceptable. In addition, customers of OYO may sometimes get discounts or other incentives from OYO, which the OYO Patron must comply with.

Maintain service standards

“The patron” is expected to:

  • Perform all duties required by the Agreement during the Term of the Lease, by the conditions hereof.
  • Ensure that the property is always clean, safe, secure, and odour-free.
  • The company must have a sufficient number of employees on hand to meet the needs of OYO consumers.
  • Keep up-to-date on any current laws and OYO policies that may affect it.
  • To ensure the safety and security of guests and other visitors, as well as the OYO Policies on Safety & Security, including the Emergency Response Protocols.
  • At any point throughout the term of the Agreement and even thereafter, OYO will provide its full cooperation and assistance to law enforcement authorities in the resolution of any OYO customer complaints or requests for information.
  • Offer full cooperation and assistance to any OYO customer complaints and requests for information made by law enforcement authorities at any time throughout the term of this Agreement and even after its expiration.

List of reasons for which OYO can suspend you

Nothing in this policy prevents OYO from canceling any OYO Patron reservations and, as a result, prohibits anybody from making a reservation for the property until all outstanding concerns have been addressed. OYO reserves the right to suspend property under the following conditions or any other situations that OYO considers appropriate:

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  • The OYO Patron’s noncompliance with OYO Policies and the Agreement;
  • OYO Patron, its employees, representatives, independent contractors, and any other parties involved in any civil or criminal or tortious actions or omissions.
  • Patron fails to comply with applicable laws and regulations, including but not limited to seeking necessary approvals as may be needed to operate the property or renewals of such and/or preserve records, etc., of OYO patron
  • Any ongoing investigation by law enforcement or any other government agency into OYO Patron or the Property;
  • Customer safety and security risks include but are not limited to threats or assaults on OYO workers, representatives, and authorities;
  • An ongoing economic dispute between the OYO Patron and OYO Inc.
  • Circumstances beyond the property’s control that make it unsuitable to receive bookings from OYO clients;
  • Its visitor experience rating has been poor over a long period;
  • OYO Patrons who fail to meet their duties under ownership paperwork may lose their property.
  • When the property is under renovation.
  • As an OYO Patron, you engage in actions of defamation against OYO’s company or brand or reputation or goodwill;
  • Information given to OYO by the OYO Patron has been discovered to be erroneous and/or false; and
  • If there are any additional issues, such as visitors who have made legal reservations not being allowed to check-in, or if there is a concern about safety or sanitation.

For the time that the OYO Patron’s property is suspended, OYO is released from all of its duties under the Agreement. In addition, any customer, private or government authority, as well as anyone else who may have a claim against OYO for reasons that caused the OYO Patron’s Property to be suspended or for issues that may arise at the OYO Patron’s Property while OYO is running the property, must pay OYO for all of these costs and damages.

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OYO townhouse 

New inexpensive hotel brand OYO Townhouse is centered on the “needs of the millennial traveler,” as stated on its official website. They are a fantastic match for the neighborhood’s ambiance, combining luxury and comfort with efficiency and affordability. By the end of 2017, there were 150 OYO Townhouses in India, spread across 30 cities. Keep reading if you’re interested in leasing your home to OYO for Townhouse.

Why lease your property to the OYO townhouse?

Many reasons exist to consider becoming an OYO Townhouse franchisee and renting out your property by the company’s business plan. Starting OYO’s network of hotels is rapidly expanding; you may be proud to be a part of it. Become an OYO partner hotel and join a national premium brand focused on functionality, aesthetics, and customer service.

For OYO franchise owners, their property’s design and infrastructure will improve, resulting in a rise in its worth as a result of this improvement. So ride the wave of expansion. Now is the time to begin a long-term business partnership with OYO Townhouse.

Pricing of OYO townhouse for customers

OYO Townhouse room rates start at Rs. 2500 per night and may up to Rs. 4000 per night as self-operated hotels. The affordable category of rooms would remain untouched. In other words, the OYO Townhouse hotel’s budget room rate per night will remain between Rs. 1000 and Rs. 1500. In Gurgaon and Delhi, the first townhouses were built.

They provide complimentary breakfast, WiFi, free parking, a backup power supply, a laundry, close circuit television cameras, and a well-trained security crew. In terms of OYO Townhouses’ features and amenities, the biggest thing to note is the fantastic restaurant, which is open 24 hours a day, seven days a week. 

Area, Cost, ROI details of OYO townhouse franchise

Costs for OYO Townhouse franchises range from 1 to 2 crore rupees. There’s a good chance that an OYO hotel franchise’s return on investment (ROI) will be around 40%, which means that the payback time for cash invested in the franchise is expected to be less than five years. The commercial property must be between 3000 and 5000 square feet in size. It goes without saying that if you’re building a hotel, you want to be near a popular tourist destination or a bustling business sector so that you can attract as many clients as possible.

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The initial length of the franchise is five years, which can be extended. Under the franchise business model, OYO is adding 10,000 rooms or roughly 500 hotels each month to the list of OYO Townhouse franchise budget hotels in India. OYO Townhouse Hotel Revenue Share Commission has increased from 18 percent to 22 percent as the company’s business plan has changed to become a successful hotel franchise chain.

How to partner with the OYO townhouse franchise?

Find out how you can join the OYO Townhouse hotel franchise network by visiting the official website at www [dot] oyotownhouse (slash) join-network if you’re interested in learning more. You can contact them at partner [at] oyorooms [dot].com to get in touch with them.


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