OYO vs FabHotels franchise India 2026: which one wins on real numbers?
OYO runs the bigger network at 18000 vs 1300 outlets. FabHotels takes less off the top (20% royalty vs 25%).
01 What actually matters
Numbers that separate them on a 5-year horizon — not the dealer-pitch summary.
On pure entry capital, FabHotels is 1.0× cheaper than OYO — ₹5 L vs ₹5 L. That gap compounds over a 5-year horizon because working capital and rent deposit scale with format size.
OYO has 13.8× more outlets than FabHotels (18000 vs 1300) — more brand recognition and supplier scale, but also denser intra-brand competition in saturated markets.
02 The numbers, visualised
Primary (flagship) format per brand. Smaller kiosk / express formats may have different economics.
Entry investment
Primary (flagship) franchise format per brand. Some brands also offer smaller kiosk / cloud-kitchen formats at lower capex — check the brand page for full format options.
Network scale — total outlets
Bigger networks mean more brand recognition and supplier scale; smaller ones mean less intra-brand competition in your territory.
Customer ratings Exact star rating + review volumePlus per-city Brand Health for both brands.Unlock with Pro →
Which brand's outlets are rated higher by customers, aggregated across locations. Exact star rating and review volume are in Brand Health.
Direction only — the underlying rating & review count are Pro data.
03 Side-by-side
Every verified data point. Green badge marks the more favourable value for a typical first-time operator.
| Metric | OYO | FabHotels |
|---|---|---|
| Entry capex | ₹5 L | ₹5 L |
| Royalty | 25% | 20% ↓ Lower |
| Gross margin | — | — |
| Min space (sqft) | 2000 | 2000 |
| Total outlets | 18000 ↑ Bigger | 1300 |
| Franchise fee | — | — |
| Working capital | ₹2 L | ₹2 L |
Not sure if OYO or FabHotels actually fits *you*?
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Compare OYO + FabHotels + 2 Budget Hotels peers in the full tool
Open this pair plus Treebo and Ginger Hotels (the next-largest Budget Hotels brands by network size) side-by-side in the full comparison tool. Add or swap brands to fit your decision.
04 Explore these brands in depth
Same data plus galleries, store-locator, margin economics, legal vault — free on every brand page.
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05 Frequently asked
Wrapped in FAQPage JSON-LD for SERP rich-result eligibility.
What is the typical contract term for these Budget Hotels franchises?
Contract terms among these brands range from OYO (10-20 years); FabHotels (10-20 years). Shorter terms offer renewal leverage but can mean the brand exits a weak market; longer terms lock you in but often include renewal fees. Always clarify renewal terms in writing before signing the initial contract.
Can I own multiple Budget Hotels franchises?
Multi-unit ownership is common in Indian franchising and several Budget Hotels brands actively encourage it through discounted second/third-unit fees. Check for "master franchise" or "multi-unit development" terms in the contract — these usually require a minimum 3–5 unit commitment within a defined city/region over 24–36 months.
Which Budget Hotels brand has the largest network in India?
OYO operates the largest network among these — 18000 outlets. Large networks offer more brand recognition and supplier scale, but also mean denser intra-brand competition in already-saturated markets.
OYO vs FabHotels — which is the better franchise investment?
There's no universal winner. OYO suits operators who value brand prestige and larger-format positioning. FabHotels suits operators who have the capital for a premium launch and prefer established scale. Your location's traffic profile, your available capital, and your operating style together determine the right answer.