Ritesh Aggarwal on D2C Economics

The core OYO model — leasing or franchising small hotels under a common brand-and-technology standard — traded asset-light economics for operational dependency on hotel-owner cooperation, a tension that surfaced sharply when occupancy collapsed in 2020.

The franchise-versus-leased mix that survived the contraction represented a clear preference for the lower-capital franchise structure, even where it conceded unit economics, confirming that the firm's long-run model is closer to a brand-and-technology franchisor than an operator.