OYO Hotels and Homes today announced a 3.5x growth in its operating revenue for India business to Rs 416 crore in FY18 from Rs 120 crore in the preceding fiscal year, the company said.

OYO attributed the growth to “notable increase” in exclusive room supply, increase in stayed room nights by 2x and consistent margin expansion.

Its revenue estimates for the current fiscal year is more than Rs 1,400 crore.

The company said it helps improve the occupancy of hotels it partners with from 25% to 65% on an average.

“Margin expansion and a high degree of operating leverage in the business model has resulted in more than 50% improvement in economics with the losses as a % of realised value coming down from 44.5% in FY 2016-17 to 20.3% in FY 2017-18,” the company added.

OYO said that further 50% improvement in the economics and a 10.4% cut in losses is estimated in FY19. 

73% of the revenue for OYO came from repeat customers in quarter ending December 2018.

The company claimed that over 93% of its demand is through its own channels instead of third party online travel agents.

OYO is currently present in over 500 cities across eight countries and has more than 13,000 franchised and leased hotels under its network with $1.8 billion in realized value run-rate and year-over-year growth of 4.3x.

The company has been embroiled in the controversy over alleged mismanagement of contracts in the past few weeks. Last month, over 200 hotels had reportedly ended their contracts with OYO pertaining to issues including contract mismanagement, arbitrary charges etc., however, the company refuted any such development.

OYO recently said that Southeast Asian nation, Indonesia has become its next large market after China and India in less than 3 months of foray in the country.

The company claimed of adding 70 hotels per month and is aiming at 100-city presence by end of 2019 in Indonesia.

OYO reportedly partnered with Saudi Arabia’s Ministry of Haj and Umrah last month to give them access to OYO’s technology suite including OYO OS and Krypton technologies. The partnership will help the ministry to provide better hospitality experience in the holy cities of Makkah and Madinah.