Core Viewpoint - OYO, a leading budget hotel chain, is preparing for an IPO with a target valuation of $8 billion (approximately 57.2 billion RMB), highlighting the potential profitability of low-cost accommodations in the global market [7][9][12]. Group 1: Company Overview - OYO currently operates over 22,700 hotels with a total of 119,000 rooms, maintaining an average price of around 50 RMB per night [9]. - The company achieved a net profit of 6.23 billion INR (approximately 500 million RMB) in the fiscal year 2024, with nearly 80% of this profit coming from markets outside India, including China [9][10]. Group 2: Financial Performance - OYO's aggressive pricing strategy has led to a high occupancy rate of 90% in its first month of operation, despite facing criticism from competitors for its "predatory pricing" [9][11]. - The company has successfully reduced its expenses by 16% in the fiscal year 2024 by repaying 165 billion INR (approximately 13.4 billion RMB) of debt accumulated during its rapid expansion [11][14]. Group 3: IPO Plans - OYO's IPO is anticipated to take place in November 2023, with significant interest from major investment banks and investors, indicating a favorable market outlook [12][13]. - The IPO is seen as a strategic move to improve OYO's brand image and shed its "budget hotel" label, aligning with its plans to expand its high-end hotel brand, SUNDAY, into 30 countries by 2026 [13][16]. Group 4: Historical Context - OYO was founded by Ritesh Agarwal, who dropped out of college to pursue entrepreneurship, initially starting with a concept similar to Airbnb before pivoting to a budget hotel model [20][22]. - The company quickly gained traction, becoming a unicorn by 2018 with a valuation of $5 billion, and later reaching a peak valuation of $10 billion in 2019 [23][26].