Townhouse, Sunday brands bring 50% of Oyo's business: Ritesh Agarwal

Ritesh Agarwal, founder of hospitality technology firm Oyo, said that half of the company’s business now comes from its premium brands, Townhouse and Sunday, both of which are growing at a double-digit rate each month.

 

He added that the reason for adding premium offerings to the company’s suite of services was to improve its bottom line and stay relevant in the market.

 

“In India, 50 per cent of our business comes from the Townhouse and Sunday brands, and the rest comes from the Oyo brand. Townhouse and Sunday are growing by double-digit per cent per month, like a Series A company. They will very quickly become 70-75 per cent in comparison to the Oyo brand, which is becoming smaller and smaller,” Agarwal added.

   

He was speaking at the TiEcon Mumbai 2025 event.

 

“Oyo started as a business focused on economy hotels in India. Then we saw customers who wanted to go mid-market, and I started the Townhouse brand. Recently, our customers wanted to go luxury, so I started Sunday,” he said.

 

He added that the firm recorded Rs 30,000 crore worth of bookings around India in the financial year 2025 (FY25). A majority of this, around Rs 24,000 crore, came from customers outside India.

 

Meanwhile, Agarwal explained that about 20 per cent of the company’s top line is derived from hotels in religious destinations such as Varanasi, Tirupati, Kanyakumari, and Somnath, among others.

 

He added that such spiritual tourism spots could add $150 billion to $200 billion to the gross domestic product (GDP) in the next three to four years alone.

 

"Look at Ayodhya, the town's economy has changed. Every single person's income, at least among those I have met, has gone up by two to three times because they are either building a hotel or a restaurant, selling land, or getting a real estate development. So, that is a massive opportunity,” he said.