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Detailed Business Profile: Oravel Stays Limited

Oravel Stays Limited operates as a major, digitally-enabled lifestyle company focused on the hospitality and housing sectors globally. The business is centered on leveraging technology to transform the fragmented and unbranded hospitality landscape into branded, quality experiences.

1. Business Description: The Two-Sided Technology Platform

The Group’s core business is providing a unique two-sided technology platform. This platform serves two main customer groups:

• Hotel and Home Owners (Patrons): The technology helps these partners transform their unbranded hospitality assets into branded, digitally-enabled hotels and homes, ultimately aiming for higher revenue generation potential.
• Customers: The platform provides customers with access to a broad range and spectrum of hotels and homes.

Key Brands and Offerings

The business utilizes a portfolio of major brands and actively growing segments:

• Major Hospitality Brands: Townhouse, Motel6, OYO, Belvilla.
• Growing Brands: Sunday, Checkmyguest, MadeComfy, and Studio6.
• Other Ecosystem Services: The Group also operates adjacent services, including Innov8 (managed workspaces) and Weddingz (wedding-related activities). The Group also deals in packages, organizing meetings, conferences, and events related activities at storefronts operated by patrons.

Parent Company Focus (Post-Demerger)

Following a composite scheme of arrangement for the demerger of the India Hotel Business (approved in 2019), the parent entity, Oravel Stays Limited, primarily functions as an intellectual property (IP) company. Its core responsibility is the development of technology and brand and housing some strategic employees.

2. The Global Corporate Structure: Subsidiaries and Joint Ventures

The consolidated financial statements encompass the Holding Company (Oravel Stays Limited), its numerous subsidiaries, and joint ventures (JVs) worldwide. The Company's global operations draw significantly on its workforce, with more than 70% of the workforce based in India, which serves as the central hub for strategic planning and global operational execution.

The Annexure to the Annual Report details a large number of entities. Key examples of entities included in the consolidation or noted in the report include:

3. Revenue Sources and Financial Performance (Consolidated FY 2024-25)

The Group achieved strong financial performance in FY 2024-25, maintaining profitability and consistent growth, primarily driven by its consolidated operations.

A. Key Financial Metrics (₹ in Crore)

The Group achieved PAT positivity and demonstrated operating leverage.

The revenue grew by 16.0% year-on-year, and the EBITDA margin (net of non-cash ESOP expenses) reached approximately 17.3% of revenue.

B. Primary Revenue Segments

The Group operates as a single business segment, but the revenue from operations is disaggregated across core activities (all figures below are consolidated operational revenues):

• Sale of accommodation services: ₹ 3,441.49 Crore
• Commission from bookings and royalty income: ₹ 1,344.12 Crore
• Other operational revenue: ₹ 325.85 Crore
• Interest Income (Other Income): ₹ 24.20 Crore

4. Recent Developments and Strategic Highlights

The fiscal year 2024-25 was a period of continued profitability, strategic expansion, and capital restructuring.

Operational and Financial Milestones

• EBITDA Goal Achievement: The Group met its target of achieving an EBITDA of ₹ 1,100 Crore.
• Sustained Profitability: The Group maintained PAT positivity throughout the fiscal year and achieved twelve consecutive EBITDA-positive quarters.
• Expansion Focus: There is a clear strategy to expand into the premium hospitality segment, scaling existing brands such as Sunday, Townhouse, Collection O, and Palette.
• Acquisitions: The Group pursued strategic, value-accretive acquisitions:
  • Acquired K&J Consulting (France) on July 29, 2024, allocating the excess purchase consideration to goodwill in the Vacation Homes segment.
  • Acquired G6 Hospitality (US and Canada lodging locations) on December 17, 2024, allocating goodwill to the Hotels segment.
• Brand Evolution: The major brands (Townhouse, Motel6, OYO, Belvilla) and growing brands (Sunday, Checkmyguest, MadeComfy, Studio6) continue to globally influence great experiences.

Capital and Compliance Actions

• Share Capital Changes: The Authorized Share Capital of the Company was increased from INR 9,01,13,59,300 to INR 13,41,13,59,300 pursuant to a shareholder resolution on June 18, 2024. Furthermore, the company allotted 33.30 Crore Equity Shares and issued 58.17 Crore Series G CCCPS (Compulsorily Convertible Cumulative Preference Shares) pursuant to various corporate actions.
• Loan Restructuring: The Group took action to secure its borrowing, obtaining a new Term Loan B of USD 830 million (and a revolving credit facility of USD 30 million) in FY 2024-25, secured against various subsidiary shares and IP rights. The Company also seeks to opportunistically prepay Term Loan B.
• IPO Withdrawal Expense: The Board decided to withdraw its pre-filed Draft Red Herring Prospectus (DRHP) on April 21, 2024, leading to the share issue expense being recorded as an exceptional item.
• Major Litigation Outcome: Subsequent to the year end, the Delhi High Court delivered a favorable judgment on May 13, 2025, allowing Oravel's application to set aside the arbitral award in the Zostel matter, dismissing Zostel's enforcement petition.
• Dividend Policy: The Board of Directors did not recommend any dividend for the Financial Year 2024-25.