The hospitality industry is growing, and as budget travel has increased, budget-friendly hotel companies such as OYO have grown in popularity. If you’re an entrepreneur looking to enter the hotel industry, an OYO hotel franchise could be a good fit. But, before you get started, you need to understand the OYO franchise cost so that you can make an informed selection.
A townhouse, in general, refers to a residential property inhabited by a single family, which shares its boundaries with other independently owned units. Akin to row houses, an owner of a townhouse generally shares one or more walls with the other. On a different note, OYO Townhouse caters to the needs of the millennial traveler through its accommodation services backed with stellar features offering optimized comfort, efficiency, convenience, and affordability; in a setting that resembles that of a townhouse
About OYO
OYO rooms entered the hospitality segment in the year 2013 courtesy its founder, Ritesh Agarwal; and have emerged as the country’s largest hospitality company in a shorter span of five years. It holds its territorial prowess over 230 Indian cities and has extended its portfolio to Malaysia and Nepal. The entity seeks to establish itself as the most preferred and trusted brand in the world.
The facility of Ola app has revolutionized the industry, as it enables people to search and book rooms, request for room service, avail cab services, and look out for nearby OYO hotels.
OYO introduced the concept of Townhouse more recently in 2017 as a managed hotel-brand designed to function as a social hotspot catering to city dwellers and the new generation of lodgers. The Townhouse would offer the traveler stellar features and dynamic services, with the added benefit of a hyper-local addres
OYO Franchise Costs and Models
Benefits Offered by OYO
| Franchise Model | Description | Initial Investment Range | Key Features |
| OYO Townhouse Franchise | Premium affordable hotels with consistent style and features. Requires a minimum of 10 rooms. | ₹1 crore – ₹2 crore (approx. $125,000 – $250,000) | Property refurbishment, brand standards compliance |
| OYO Flagship Franchise | Transformation of existing hotels/resorts into OYO-branded properties. Flexible in size and design. | One-time business success fee: ₹2 lakh (approx. $2,500) | Minor modifications to meet OYO standards |
Benefits Offered by OYO
- Top quality property makeover.
- Hassle-free operations.
- Transparency in reviews.
- Financial backing.
- A promised occupancy rate of 80% for each day.
- A track record of guests who had a happy experience, and that of those who came back.
- Well established brand.
- FICO business format.
- Profitable ROI (Returns on Investment).
- Designed for business, leisure, and pleasure.
- Smarter rooms.
- Smarter spaces.
- Smarter buildings.
- Smarter service.
- Smarter locations.
- Guaranteed returns from the 7th month of association.
- Secured Investments.
Rental Charges at the Townhouse
OYO rooms charge anywhere between INR 2,500 and 4000 per day for their townhouse facility.
Financial Requirements
Aspiring entrepreneurs are required to invest a sum of INR 1 crore-2 crore to launch an OYO Townhouse franchise, in addition to the working capital and investment reserves. As per the claims of the company, the franchise would receive an ROI of 40%, resulting in a shorter payback period.
Infrastructural Specifications
The townhouse can be constructed in a commercial property scaling to a Square feet of 3000-5000. The property could be located near a tourist hub or a particular place in the city or town which may draw people in.
Proposed Area of Expansion
OYO rooms are currently located at various jurisdictions, but the pursuit of growth drives one to make a march into uncharted territories. The following locations have been shortlisted for the purpose, though not all are uncharted by the group :
North Zone
- Delhi
- Haryana
- Himachal Pradesh
- Jammu and Kashmir
- Punjab
- Uttaranchal
- Uttar Pradesh
South Zone
- Kerala
- Karnataka
- Tamil Nadu
- Andhra Pradesh
- Telanagana
East Zone
- Assam
- Meghalaya
- Mizoram
- Tripura
- Arunachal Pradesh
- Manipur
- Nagaland
- West Bengal
- Sikkim
- Odisha
West Zone
- Gujarat
- Rajasthan
- Maharashtra
- Goa
Enrollment Procedure
The applicant can make an application for the opportunity by either visiting the OYO website and entering the mandatory and essential details. Post receiving the application, the company would contact the applicant if it feels that the particular candidate is a good fit for the endeavor.
Training
OYO accords its business partners with the facilities generally provided to all franchisees, which includes the likes of induction training, expert guidance from the head office to establish the franchise, field assistance, and operating manual.
Duration of Agreement
The business partnership between OYO and the franchise would be pursued with a five-year business agreement, which is renewable upon expiry.
FAQs
What is OYO Townhouse?
OYO Townhouse is a premium hotel brand from OYO, designed for millennial travelers. It focuses on providing a stylish, affordable, and comfortable experience, blending hotel, home, and café-style elements.
How does the OYO Townhouse franchise model work?
OYO Townhouse works on a franchise model where OYO partners with hotel owners to rebrand and upgrade their properties under the OYO Townhouse brand. OYO manages operations, marketing, and bookings, while the property owner handles day-to-day management.