Ritesh Agarwal: The Billion-Dollar Hostel Kid Who Rewrote Global Hospitality
At 31, Ritesh Agarwal has gone from dropping out of college to run OYO — the world’s third-largest hotel chain by room count, present in 80+ countries, and now profitable across core markets. From a s
At 31, Ritesh Agarwal has gone from dropping out of college to run OYO — the world’s third-largest hotel chain by room count, present in 80+ countries, and now profitable across core markets. From a single Kota guesthouse in 2013 to a $10 billion valuation peak and a dramatic 2024 turnaround, he remains the youngest self-made billionaire in India. Here’s the no-filter conversation.
CSuite: You started OYO at 19 with ₹40,000. Twelve years later you’re in 800 cities. What’s the real engine behind that speed?
Obsession with the customer nobody else wanted. In 2013, budget travelers in India were getting fleeced — broken ACs, dirty sheets, no Wi-Fi. We said: What if every ₹1,499 room felt like a ₹5,000 experience?
Standardization at the bottom of the pyramid is the hardest problem in hospitality, but it’s also the biggest moat.
CSuite: 2019–2022 was brutal — valuation crashed 80 %, layoffs, debt. You bought back $2 billion of shares yourself at 23. How did you stare down bankruptcy?
Ritesh Agarwal: I stopped listening to headlines and started listening to unit economics. We were drunk on growth capital — 50+ countries, 1 million rooms, zero profitability. The reset was painful but simple: shut unprofitable markets, fire 5,000 people, and get every property to positive EBITDA before adding the next one. By mid-2024 we were free-cash-flow positive for six straight quarters. Lesson: growth is oxygen; profit is food.
CSuite: You personally own ~30 % after the $2 billion founder buyback. Most founders dilute to 5–10 %. Why go the opposite way?
Ritesh Agarwal: Alignment. If I’m asking my team to think 20 years out, I better have permanent skin in the game. The buyback was funded by SoftBank and myself — we took the same terms as any investor. When the company wins, employees and early believers win bigger. That’s how you build a 100-year company, not a five-year exit.
CSuite: OYO is now the largest hotel brand in the U.S. by franchise locations after acquiring G6 Hospitality (Motel 6). How does a 31-year-old Indian kid outmaneuver Hilton and Marriott?
Ritesh Agarwal: We don’t compete on marble lobbies; we compete on yield per square foot. U.S. budget travelers want clean, safe, predictable — exactly what we perfected in India. G6 had 1,400 motels losing money. We’re converting them at $8,000 per key (vs. $80,000 for a new build) and lifting RevPAR 30 % in the first year. Asset-light + tech + obsessive execution beats legacy scale every time.
CSuite: You’re launching “OYO Premium” and co-living. Is the vision still budget, or are you moving upmarket?
Ritesh Agarwal: Budget is the soul, but humans aspire. We’ll always own the ₹999–₹2,999 segment in India and the $59–$99 segment globally. Premium (Sunday Hotels, Townhouse) and co-living (OYO Life 2.0) are for the same customer five years later. One brand, lifetime relationship.
CSuite: Talent is the hottest topic in Indian startups. How do you keep senior leaders when Big Tech and U.S. firms pay 3×?
Ritesh Agarwal: Stock and story. Our top 200 leaders own meaningful equity — many became crorepati in the 2024 rally. More importantly, they’re building the first truly global Indian consumer brand. You can make $10 million at Google or help put India on the world hospitality map. Different people choose different things.
CSuite: You married at 29, became a father, and still work 16-hour days. How do you think about life balance?
Ritesh Agarwal: I don’t believe in balance; I believe in seasons. There are founder seasons and family seasons. Right now we’re in the “make OYO undeniable” season. My wife understands the mission — she grew up watching me code the first OYO website. When the company can run without me for 90 days, I’ll take a 90-day sabbatical. That’s the deal I made with myself.
CSuite: Government relations have swung from red tape to red carpet. What changed?
Ritesh Agarwal: Results. When we were burning cash, we were a problem. When we started paying GST worth thousands of crores and creating 100,000+ direct jobs, we became a partner. Tourism is 8 % of India’s GDP — we’re the largest private contributor now. Respect is earned one profitable quarter at a time.
CSuite: Three bets you’re willing to be judged on in 2035?
Ritesh Agarwal:
- OYO will be the largest hospitality company in the world by rooms under management (not valuation — actual keys).
- India will have 10+ homegrown global consumer brands valued above $50 billion each.
- Budget travel will be the biggest wealth creator for the middle class in emerging markets.
CSuite: Final piece of advice to every 19-year-old reading this?
Ritesh Agarwal: Start before you’re ready. The world rewards action, not perfection. Solve a problem you personally feel every day — that pain is your unfair advantage.
CSuite: Thank you, Ritesh.
Ritesh Agarwal: Thank you. Onward.
