Haha. I’m not an Oyo spokesperson. I can’t comment on all the questions you asked but from a company fundamentals perspective - they turned profitable. Yes they have Debt, but I don’t see this as a major problem.
Yes their customers are mostly young. This gives them a growing client base. Oyo hotels are used a lot by couples. As India further modernises and the number of couples looking for a private place increases, Oyo’s hotels would see a great increase in clients. Furthermore, Oyo has also made some plays in the high end side.
Look - Oyo isn’t Taj. They never will be. But this is where their strength lies. They can target the large (and growing) middle class of India. Things like Quality of their service becomes irrelevant in the space they operate.
Having 43,000 properties is no joke and this is because of their asset light model. By number of rooms, Oyo has become the 3rd largest hospitality chain in THE WORLD! only behind Hilton and Marriott. They are also operating some hotels in the USA and Europe. I remember seeing an OYO in New York, right next to Times Square.
Right now, Oyo is at about $2.5 Billion valuation. Its peak was $10 Billion. So yes- it is down. During the start-up craze where companies like Paytm and Byjus were leading, money was flowing around like crazy. Now that everyone has come back to their senses, the new valuation at the moment makes a lot of sense. As long as the company keeps going on its current track, I think it will eventually hit the $10 billion mark again and even cross it. I plan to exit after the company has done an IPO and not in the private equity market. I’m also fairly confident the Retail crowd and Mutual funds would love this- like Zomato once it turned profitable!