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OYO Franchise in India: Cost, Requirements & Process

Find out how to turn your property into a revenue‑driven stay. Check OYO franchise fees, eligibility, tech integrations, and the exact steps to join the network.

Last updated on: March 27, 2026

OYO is a hospitality platform that works with hotels, guest houses, and small accommodation providers across India through partnership and franchise-style models. Founded in 2013, the company operates a network of standardised stays by connecting independent property owners with its technology systems, booking platforms, and brand ecosystem. Through this partnership structure, property owners can list and operate their accommodations under OYO-branded formats while following the company’s operational guidelines and service standards.

Why Choose an OYO Franchise

OYO operates a hospitality network that partners with hotel owners and property managers across India. Through its branded accommodation models, the company connects independent properties with its booking platform, pricing systems, and operational framework.

  • Brand Association

Properties can operate under the OYO brand, which functions as a hospitality platform connecting hotels and accommodations with travellers through its online booking ecosystem.

  • Technology Platform

Partner properties generally integrate with OYO’s technology systems for room inventory management, online reservations, pricing updates, and guest coordination.

  • Distribution Network

OYO listings are typically available across multiple digital channels, including the company’s website, mobile applications, and partner travel platforms that support booking visibility. 

  • Standardised Operations

Properties may follow certain operational guidelines related to room standards, service practices, and customer experience expectations defined by the company. 

  • Marketing and Visibility

Partner accommodations can benefit from brand-level marketing campaigns, digital promotions, and online presence that support booking discovery across different regions. 

OYO Franchise Cost & ROI

The investment required for an OYO franchise largely depends on the specific operational model chosen. The expenses vary significantly depending on whether you’re refurbishing a small existing guest house into a standard budget property or constructing a premium, large-format OYO Townhouse.

Below is an estimated breakdown of the capital required to initiate an OYO partnership:

Expense Head Estimated Cost Notes

Franchise / Brand Fee

₹2 Lakhs - ₹5 Lakhs

Applicable for standard budget models, covers branding, training, and platform access; can be higher for premium Townhouse formats.

Infrastructure & Renovation

₹10 Lakhs - ₹30 Lakhs

Estimated cost for upgrading interiors, furniture, plumbing, and signage to strictly meet OYO standards for budget properties.

Working Capital

₹2 Lakhs - ₹5 Lakhs

Essential for daily operations, initial staff salaries, and localised marketing until the property achieves stabilisation.

Total Estimated Investment

₹15 Lakhs - ₹40 Lakhs

For a standard budget OYO property conversion.

Total Townhouse Investment

₹1 Crore - ₹2 Crores+

For premium, upscale OYO Townhouse developments requiring extensive capital.

Return on Investment (ROI) Estimates

Metric Estimate Notes

Revenue Share (OYO)

10% - 25%

OYO retains a percentage of the gross room revenue as commission, scaling up to 25% for premium properties.

Anticipated ROI

18% - 25% p.a.

Highly stable returns backed by tech-enabled occupancy lifts.

Breakeven Period

12 - 18 Months

Faster break-even for well-located budget properties; under 12 months is possible for high-demand Townhouse locations.

Agreement Tenure

5 Years

Standard, mutually renewable commercial contract.

Note: The OYO franchise costs mentioned above are indicative. Actual capital requirements may vary based on current company policies, local real estate rates, and the specific tier of the city.

OYO Franchise Requirements

OYO partnerships generally involve hotel owners or property managers who list their accommodations on the company’s hospitality platform. The requirements typically relate to property specifications, legal compliance, operational readiness, and integration with OYO’s technology systems. 

  • Property Size and Room Count

Properties usually need a minimum of around 12–15 rooms for standard OYO hotel formats. The exact requirement may vary depending on the selected model, such as budget hotels or premium formats like OYO Townhouse. 

  • Suitable Building and Infrastructure

The property is generally expected to be a structurally sound building with multiple floors and rooms that can be standardised according to OYO’s hospitality guidelines. Existing hotels or guest houses often require fewer modifications compared to residential properties converted into hotels. 

  • Legal Documentation and Licences

Property owners typically need clear ownership or lease documentation, along with relevant licences such as fire safety approvals, trade licences, and GST registration where applicable. 

  • Technology Integration

Partner hotels are generally required to integrate with OYO’s property management and booking systems, which help manage room inventory, pricing updates, check-ins, and guest reservations through the platform. 

  • Operational Readiness and Staff Training: 

Hotel partners may participate in onboarding and training programmes to align with OYO’s service standards, hospitality protocols, and operational procedures before the property goes live on the platform.

How to Apply for an OYO Franchise

The application process for partnering with OYO generally takes place through the company’s official property partner portal. Property owners can submit their details online and connect with the OYO onboarding team to explore listing opportunities. 

  1. Visit the OYO Partner Portal: 

Go to the official OYO property partner website patron.oyorooms.com/in. 

  1. Click on ‘Join OYO’: 

On the homepage of the partner portal, locate and click the ‘Join OYO’ button. 

  1. Fill in Basic Details: 

The online form requires basic information such as name and property owner’s contact details. 

  1. Request a Call: 

Select ‘Request a Call’ to proceed. The onboarding team typically reaches out to share the next steps. 

  1. Contact the OYO Team (Optional): 

Property owners may also reach out directly through the property listing helpline (OYO franchise contact number) on 0124-6851819. 

  1. Evaluation and Onboarding: 

Once the enquiry is received, the OYO team may request and review the property details and communicate further steps related to property evaluation, documentation, and onboarding procedures. 

Financial Planning and Support Options

Partnering with OYO often requires financial planning related to property development, room upgrades, operational setup, and working capital for the early stages of operations. Since many OYO partnerships involve existing hotels or guest houses, the financial structure may vary. 

Self-funded Property Investment

Some hotel owners rely on personal capital or family funding to develop or upgrade their property before listing it on the platform. These funds may be used for renovations, furnishing rooms, installing amenities, or meeting basic hospitality standards required for guest accommodation.

Hospitality or Business Loans

Financial institutions in India offer business loans and hospitality sector financing that may support hotel construction, renovation, or operational expenses. These loans can sometimes be used for infrastructure improvements, room upgrades, furniture purchases, or working capital needs during the initial phase of operations.

Government Tourism and MSME Schemes

Certain government initiatives support tourism-related businesses and small enterprises. Property owners who register their establishments under eligible categories may explore schemes designed for hospitality infrastructure development or MSME credit support, subject to the programme’s eligibility criteria.

Co-investment or Partnership Arrangements

In some situations, hotel projects are developed through joint investments or partnership structures where multiple investors contribute capital toward property development and operations. Such arrangements can distribute financial commitments while supporting the establishment or expansion of accommodation facilities.

Business Loan Offers and Interest Rates by Various Lenders on Bajaj Markets

To optimise your hospitality investment, securing competitive business loan interest rates is vital. On Bajaj Markets, you can evaluate multiple lending partners to identify a loan structure that aligns with their projected room revenue.

Available Offerings

Max. Loan Amount

Min. Interest Rate

Max. Tenure

Aditya Birla Capital UDYOG PLUS Business Loan

₹10 Lakhs

22% p.a.

36 months

AYE Finance Business Loan

2 Lakhs

29.5% p.a.

30 months

Bajaj Finance Business Loan

80 Lakhs

14% p.a.

96 months

FlexiLoans Business Loan

50 Lakhs

18% p.a.

42 months

Indifi Business Loan

30 Lakhs

22% p.a.

36 months

KreditBee Business Loan

30 Lakhs

18% p.a.

36 months

L&T Financial Services Business Loan

₹75 Lakhs

15.5% p.a.

60 months

Lendingkart Business Loan

35 Lakhs

19.2% p.a.

36 months

Protium Business Loan

₹35 Lakhs

20.5% p.a.

36 months

Credit Saison Business Loan

₹10 Lakhs

22% p.a.

36 months

Godrej Capital Business Loan

₹50 Lakhs

16% p.a.

72 months

*Disclaimer: The rates are subject to change at the lender’s discretion. 

Conclusion

OYO partnerships provide a framework through which hotel owners and property managers can connect their accommodations to a wider digital booking ecosystem. By integrating properties with the platform’s technology systems, pricing tools, and distribution channels, participating hotels become part of a pan-India network. Evaluating these considerations can help provide a clearer understanding of how the OYO partnership model functions within the broader  hospitality sector.

Financial Content Specialist

Reviewer

Aakash Jain

FAQs

What is the cost of an OYO franchise in India?

The cost to start an OYO franchise varies based on the property model. For a standard budget hotel conversion, the franchise fee ranges between ₹2 Lakhs and ₹5 Lakhs, with an additional ₹10 Lakhs to ₹30 Lakhs required for essential interior renovations. For premium, full-scale models like OYO Townhouse, the total initial capital required typically ranges between ₹1 Crore and over ₹2 Crores.

Is OYO a profitable business?

OYO’s business performance may depend on several factors. These can include location demand, occupancy rates, pricing strategies, and overall travel activity. In areas with consistent tourist or business travel, hotel partners may experience steady bookings and operational activity.

Who is the CEO of OYO?

The Founder and global Chief Executive Officer (CEO) of OYO is Ritesh Agarwal.

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