'You don't need millions': OYO's Ritesh Agarwal shares blueprint on how to start a hotel business in the US with just $10,000

Time of India

25-06-2025

In a rare and detailed breakdown, OYO founder
Ritesh Agarwal
has revealed exactly how he would start a hotel business in the United States — even with as little as $10,000. Speaking candidly about the tough lessons of entrepreneurship, Agarwal emphasized that success in hospitality comes not from initial acceptance, but from surviving rejection.
'If I had $100,000 — or even just $10,000 — I'd still start,' Agarwal said in a video posted on YouTube. What follows is a step-by-step playbook grounded in his own experience launching OYO, one of the world's largest hotel chains.
Step-by-step process
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Step 1: Find the Right Property
Finding the right property is "50% of the battle," he explains. This involves scouring websites like Auction.com or Crexi, working with brokers like CBRE, and — most critically — knocking on doors and building relationships with motel owners. Many small property owners are looking to retire and may be open to selling if approached with sincerity and vision.
Step 2: Finance Smartly — Even Without Millions
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Agarwal breaks the myth that you need millions to get started. A 20-30 room economy motel might cost around $1–1.5 million. But up to 80% of that can be financed through:
Regional banks like PNC or American Pride Bank,
SBA loans (government-backed small business loans),
Owner financing, where sellers offer a loan in return for a slightly higher price.
This reduces the upfront need to just $200,000. From there, finding 9 investors willing to pitch in $20–22k each brings in $190,000 — leaving the founder to contribute just $10,000 personally.
Step 3: Run It Yourself (At First)
The biggest mistake, according to Agarwal, is hiring a manager right away. 'Run your first property yourself,' he insists. From managing mold issues to dealing with HVAC or retaining staff, the first few months are critical for learning how to operate lean and smart.
Step 4: Generate Income and Scale
A 20-room property can generate around $100,000 in net income per year, even after loan payments. A portion of that goes to upkeep, another as management fees. 'You can walk away with $10,000 or more annually from one property,' says Agarwal.
He shared the story of Bob B. from Oklahoma City, who started with one motel and now owns three. Bob now earns over $60,000 annually and continues to build value from his growing portfolio.
Final Thought:
'This isn't theory — this is real,' says Agarwal. 'You just need to start. And once you start, you can multiply.'
Whether you're an aspiring hotelier with limited capital or an investor looking for a roadmap, Agarwal's guide offers a compelling mix of realism and inspiration.