Hotel Management Network

Oyo to introduce in-house dining across Townhouse hotels

This strategic move is anticipated to add between 5%-10% additional revenue at the hotel level on a stable state basis.

Oyo, a prominent hospitality chain, has announced its expansion into the food and beverages sector, introducing in-house kitchens and quick service restaurants (QSRs) across its Townhouse hotels.

This strategic move is anticipated to add between 5%-10% additional revenue at the hotel level on a stable state basis.

The company's ambitious programme targets 1,500 of its company-serviced hotels by financial year 2026.

Guests will have the option to order meals from the in-house dining facilities or through online platforms, including Oyo's own application. The kitchen setup will be tailored to each hotel's profile, ranging from full-fledged commercial kitchens to pantry setups for essential food items.

"In addition to in-house kitchens, the company is also introducing QSR carts and lobby stores under the brand name ‘Townhouse Cafe’, offering ready-to-eat food options and on-the-go customer needs without the wait time of traditional restaurants," Oyo stated.

This initiative aims to cater to the growing demand for convenience and quality within the hospitality sector.

The decision follows a successful pilot programme launched in January this year, which included 100 company-serviced hotels across cities such as Delhi, Gurugram, Hyderabad, and Bengaluru. The nationwide rollout is a testament to the programme's initial success.

"The initiative aims to enhance the in-hotel dining experience for guests by offering fresh, convenient, and quality meal options across its network," stated Oyo chief operating officer Varun Jain. To support this expansion, Oyo is building a network of trusted F&B experts in key cities across India.

This expansion comes at a time when the Indian market is witnessing a premiumisation trend, with customers increasingly willing to spend on enhanced hotel stays. Oyo's in-house dining initiative is expected to significantly improve customer experiences at its company-serviced hotels.

In April 2025, ET Travelworld revealed that OYO plans to launch a dedicated app for its premium hotels and mid-market to premium company-serviced hotels.