Uncovering Hidden Profits: EDA Secrets to to OYO Hotel Investments

I just became quite interested in the possibility of investing in an OYO hotel. I've always found the special nexus of hospitality, technology, and human experience to be fascinating, which is why the idea had been lingering in my thoughts for some time. That combination seemed to be brilliantly captured by OYO, with its tech-driven business model and extensive network of affordable accommodations.

Technology is changing how people travel and what they expect from their vacations, so it's not just about rooms and profits. I became more interested in the concept the more I researched it. It seemed more like an opportunity to invest than a chance to join a new trend in the hotel sector.

Age old problem: Where do you invest?

India is massive. Every city offers something different — heritage, beaches, business hubs, mountains, or metro madness. Everyone I asked had an opinion. “Goa is gold.” “Try Pondicherry.” “Delhi has corporate demand.” “Avoid tier-2 cities.” It was a lot.

Honestly? It felt like throwing darts in the dark.

So, I did what I do best — I went to the data.

The Game-Changing Dataset Behind Smarter Hotel Investments

Coincidentally, I stumbled onto a dataset that, to be honest, almost seemed like gold. But it wasn't just any data—this one had real reservations made at OYO hotels in various Indian cities. Plus, the best part? The information was not entirely high-level. From hotel locations and guest ratings to room pricing and even the kind of services offered, the dataset included detailed information. That was the case with the behind-the-scenes blueprint of how OYO hotels operate and perform in different areas. As a data and travel enthusiast, I quickly understood that this dataset would offer some very useful information, especially for individuals looking to invest sensibly in the hotel sector.

• City

• Price per room

• Number of rooms

• Occupancy rate

• Total monthly revenue

• Customer ratings

• Discount rates

• Amenities

For someone trying to make a financially sound investment decision, this was gold. I wasn’t just looking for a “popular” place. I was looking for a profitable one.

Inside the Numbers

First, I did a full EDA (exploratory data analysis). Thankfully, the data was mostly clean — no major missing values or anomalies.

Some quick aggregations and plots later, I saw a wild pattern:

Most OYO hotels hosts were earning modest amounts — ₹10K to ₹25K/month — but a few were absolutely killing it, crossing ₹70K+ per month.

I needed to know why.

Unpacking the Data Treasure Chest

We started with 791 OYO listings scraped from the platform. After cleaning—dropping duplicates and patching missing values—we kept the six useful fields:

• Hotel name

• Location

• Price (₹/night)

• Discount

• Rating

• derived fields: City, Revenue = Price × Rating

How Much Do OYO Rooms Cost?

Most rooms cluster above the ₹1,000 mark, with a long‑tail of luxury outliers inflating the mean.

Key takeaways:

The typical price is approximately ₹1,100, and the majority of postings are rather inexpensive. This makes it a useful baseline for affordable possibilities because half of the properties are priced below it.

But there's also a pronounced luxury market. A few expensive ads that range in price from ₹6,000 to ₹10,000 are pushing the average price upward. Although they are uncommon, these are probably upscale residences with additional features or desirable locations if you're looking at the general cost pattern.

Where Are the Listings?

OYO supply skews heavily toward metro and tourist hubs.

It is evident from the data that the cities with the greatest number of OYO hotels are Bengaluru, Mumbai, Hyderabad, Delhi, and Pune. OYO has concentrated so much of its supplies in these cities since it typically indicates that there is a high level of demand there. Cities with high hotel availability are undoubtedly hotspots worth keeping an eye on because they frequently imply high tourist interest, business activity, and the potential for high occupancy rates overall.

A Fast and Simple Way to Estimate Revenue

Because occupancy data was missing, we approximated revenue as:

Revenue ≈ Price × Rating

It’s a rough estimation, but it rewards listings that can charge more and stay highly rated.

Which Cities Make the Most Money?

The following five cities stand out in terms of producing consistent revenue per listing:

The Bengaluru

Mumbai.

Hyderabad.

Delhi.

Pune.

Even after accounting for pricing disparities, some places still do well, which is interesting. Put another way, these places are excellent candidates for investment since they continuously yield higher returns, so it's not simply about raising prices.

Correlations at a Glance

In order to increase revenue, both price and guest rating are important; the greater they are, the better the earnings are typically.

The important realization is that pricing isn't the only factor that tells the whole story. Ratings are a true asset when it comes to revenue. Therefore, the combination of good pricing and positive reviews is what really promotes higher performance, even if a listing is expensive.

Do Higher Ratings Really Pay Off?

In addition to boosting costs for the purpose of raising them, cities that charge higher Average Daily Rates (ADRs) are also providing higher-quality services. Strong visitor ratings are typically maintained by these establishments, indicating that when visitors believe they are receiving a better experience, they are willing to pay more. To put it briefly, more satisfaction results from higher pricing in certain places, indicating that visitors are willing to pay for perceived quality and value.

Looking at Feature Importance

A quick Random‑Forest regressor confirms the obvious:

As far as revenue prediction goes, guest rating is actually a more accurate indicator than price. Accordingly, a listing with positive reviews has a higher chance of generating more income than one with a high price alone.

This demonstrates the importance of spending money on factors like cleanliness, friendliness, truthful listings, and considerate touches. A host in Hyderabad who charges ₹1,500 per night and regularly receives reviews with a grade of 4.8 or above, for instance, may eventually make more money than someone in the same neighbourhood who prices ₹2,000 but only receives average evaluations.

Useful Ideas You Can Act On

City Focus: Begin by concentrating on Bengaluru, Mumbai, Hyderabad, Delhi, and Pune, as these cities continuously produce impressive revenue results. These markets are perfect for growing or introducing new inventory since they have demonstrated consistent demand and higher returns per listing.

Price Band Strategy: Try to keep prices between ₹1,000 and ₹3,000. This band strikes a balance between providing customers with a cheap experience and maintaining a respectable profit margin. It serves both those on a tight budget and those prepared to shell out a little more for a little more comfort.

Experience of the Guest: Never undervalue the importance of excellent service. Invest in thoughtful facilities, staff training, and cleanliness; even little things can have a big impact on visitor reviews. Additionally, this is an area that is well worth every rupee because higher ratings are closely associated with higher revenue.

Luxury Bets: The portfolio may include a few ultra-premium listings, particularly in areas with strong demand. To make sure they don't reduce your margins, however, maintain a careful check on operating expenses. Efficiency is equally as important in luxury as elegance.

Dynamic Pricing: Make use of astute pricing techniques. When ratings increase, up your prices because good reviews support charging more. Be adaptable, nevertheless, and lower prices during times of low occupancy to remain competitive and keep bookings consistent.

Figuring Out How to Make Money

Of course, I wanted to know what exactly influences an OYO host's income. I therefore put on my work boots and began analyzing the data. Here is what I discovered when I examined a few important variables that I believed would affect revenue:

📌 Room Pricing: It goes without saying that higher prices will generate more income. The hitch is that this only applies if demand remains strong. There must be a balance because too high of a price may result in fewer reservations.

📌 Occupancy Rate: The occupancy rate proved to be the most effective source of income. In other words, you make more money the more nights your property is reserved. Even low pricing was frequently exceeded by high occupancy in terms of overall revenue.

📌 Guest Ratings: I was surprised to learn how important ratings were. Guests were more likely to trust properties with consistently good ratings, and this trust resulted in higher profits. Positive reviews are a huge advantage, not simply a good to have.

📌 Discounts: This is when the fun began. I thought that by drawing in more reservations, providing steep discounts would increase income. However, the facts presented a different picture. Strong discounts frequently resulted in lower earnings for properties. What do I suppose? Excessive discounts could be interpreted as an indication of inferior quality, turning off rather than attracting potential customers.

📌 Amenities: Simple conveniences have a big impact. Listings with flexible check-in/check-out times, free Wi-Fi, and breakfast typically did well. These minor comforts appeared to enhance the overall visitor experience, which in turn increased revenue.

What I Learned (and How It’s Guiding Me)

How This Project Influenced My Investment Strategy for OYO Hotels:

City Issues — Numerous:

The fact that location is crucial is among my most obvious realizations. I'm now concentrating on cities like Bangalore, Hyderabad, and Pune because of their steady demand, not just because they seem nice on paper. People that require dependable lodging all year round, including students, tech workers, business travellers, and temporary project workers, call these places home. Consistent bookings are ensured by this type of constant foot traffic.

Avoid blindly pursuing high prices:

It's simple to assume that higher pricing equates to greater profits, but the statistics showed otherwise. Visitors will find another place to stay if your location or service don't warrant the higher price. Therefore, I intend to maintain moderate pricing and concentrate on promoting high occupancy rather than aiming for the highest price range. A fairly priced, fully booked accommodation is frequently preferable to an expensive, vacant one.

Make the Most of Occupancy:

This became my new motto. The true force behind steady revenue is occupancy. I'll be looking for houses close to tech parks, hospitals, colleges and transport hubs—places where people need housing, not simply want it. Even during off-seasons, these locations have a built-in demand that keeps booking rates stable.

Revenue equals Guest Experience:

I discovered a high correlation between revenue and ratings. Visitors are concerned about their experience, and that has a direct effect on your revenue. So, I'll be concentrating on the essentials: spotless rooms, easy check-ins, friendly personnel, and basic amenities like a satisfying breakfast or dependable Wi-Fi. These seemingly insignificant details have a big impact on getting positive evaluations and, eventually, increasing revenue.

To put it briefly, this undertaking caused me to change my attention from speculation to planning. Now, it's more important to consider who I'm serving, what they need, and how reliably I can provide it than it is to consider where or how much.

The Bottom Line

I never thought my perspective on investment would be so drastically altered by delving into an OYO hotels dataset. However, it is precisely what took place. Up until now, I frequently relied on my instincts, unofficial counsel from acquaintances, or information I found on unrelated internet forums. To be honest, it was a little hazardous and felt like guesswork.

It's all different now. Real data, distinct patterns, and insights that genuinely convey a narrative are what I'm examining. What visitors genuinely value, which locations are succeeding consistently, and where the best chances are located are all visible to me. This technique is supported by statistics and is no longer merely a gut feeling.

I won't be investing in the dark, regardless of whether I decide to act next month or wait until next year. I'm going to invest with data, not speculation.