OYO’s Ritesh Agarwal predicts $200 billion boom in India’s religious tourism
Oyo's Ritesh Agarwal predicts India's religious tourism will generate $150-200 billion in 3-4 years, citing growth in pilgrimage locations and new hotels. He highlights Ayodhya's economic boom and Oyo's investments in the UK and US.
FollowOyo founder and CEO Ritesh Agarwal sees major growth in India’s religious tourism sector, predicting it could generate $150-200 billion in the next 3-4 years, reports MoneyControl. Aggarwal emphasized the growing need for lodging in pilgrimage locations during his remarks at the TiE Con Mumbai 2025 event. "Over 5 lakh people stayed with Oyo during the Kumbh in Prayagraj," he stated. Our revenue from religious places is about 20%. The two best-performing Indian marketplaces, Banaras and Tirupati, are at the top. He emphasized the large number of tourists that visit Tirupati every day, which increases during the school breaks, and the growing interest in new religious hotspots like Kanyakumari and Somnath.
"People now have additional alternatives thanks to the construction of new hotels. They used to solely stay in Dharamshalas, but now days, superior lodgings promote longer stays," he continued. Agarwal gave the example of how religious tourism propels economic growth in Ayodhya. "The economy of the town has evolved. Whether via real estate, restaurants, hotels, or land sales, everyone I've met has seen their income increase by two to three times. It's a huge potential," he remarked, describing it as a promising area for new businesses.
Emerging centres like Kanyakumari and Somnath are also seeing more development in terms of hotels, he added.
Like spiritual tourism, Agarwal is seeing a big opportunity in business outside India. Last month, the company announced plans to invest £50 million in the UK over the next three years, primarily to focus on expanding its premium hotel portfolio. It also detailed plans to invest $10 million (Rs 87 crore) to grow G6 Hospitality's (operators of Motel 6 & Studio 6) digital assets in the US.
Ritesh Agarwal recalls his early days
Agarwal recalled a significant investment from Dr. Apoorva Ranjan Sharma, an early supporter of Oyo's parent business, Oravel Stays, at the ceremony, which allowed him to reminisce on his early days. "Dr. Sharma persuaded me to meet investors even though I wasn't initially interested in doing so. He introduced me to two investors at Iskcon Mandir in Juhu and extended an invitation to visit Mumbai. They thought my company may be worth millions, but I was having trouble making ends meet. My life was revolutionized by the Rs 5 lakh loan they provided me," he stated.
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Later, when Oyo was worth $6 billion, Sharma reinvested his $400 million shares. "He has been a lifetime partner, on and off, but always a friend," Agarwal said.
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