OYO Hotels & Homes, which recently announced of becoming China’s largest hotel brand, today announced that the company has now emerged as the world’s third largest hotel chain (as per room count) as of June 2019, and fastest-growing chain of hotels, homes & spaces, leaving behind several traditional and long-standing hospitality brands.
In a short span of 6 years, OYO has expanded its presence to 800+ cities, nearly 23,000+ OYO-branded hotels and 850,000 rooms, surpassing the scale of traditional and established hotel chain brands in the world.
This fast-paced growth is backed by a strong balance sheet of about $1.5 billion, and fuelled by the company’s success in China with presence in 337 cities and over 500,000 rooms, followed by fast-paced growth in Indonesia with presence in 80 cities and over 20,000 rooms and 720 hotels and other regions in Asia. Additionally, the UK with presence in 25 destinations and 85 hotels, and more recently the U.S., with a presence in 40 cities and over 68 hotels, have been strong growth drivers. A significant part of its funds is being invested in the business as the company focuses on maintaining its growth momentum across geographies. The company has created over 300,000 direct and indirect job opportunities across India, China, U.S., and the U.K. The recent acquisition of @Leisure has further helped the company strengthen its leadership in the vacation home segment in Europe.
Commenting on the development, Ritesh Agarwal, Founder & CEO (Group), OYO Hotels & Homes, said, “I am humbled to see the love and support of our customers and real estate owners that have helped us in emerging as the third-largest hotel chain* basis the number of rooms. Today, OYO has over 850,000 exclusive keys as part of its hotel chain. We started with a simple mission of creating quality living spaces. Over 500,000 heads rest on OYO hotel pillows daily today, a testament to the impact we are creating globally. In the last six years, we have enabled job opportunities for over 300,000 young people across India, China, U.S., and the U.K. and will continue to support the growth of the Hospitality, Travel and Tourism industry around the world. I am happy to see that real estate owners continue to see value in working with OYO Hotels while witnessing an increase of approximately 30% in occupancy, a 2.5X jump in RevPar and profits. This is a strong validation of the impact we have on their business, both at customer experience and revenue levels. Today, we are a small percentage of the world’s accommodation market, and we have an incredible opportunity ahead of us. We are just getting started.”
In China, with second-tier cities at its core, OYO Hotels’ footprint is present across the country’s tier-2 to tier-6 cities with over 500,000 rooms as a part of its chain. It has expanded its roots deep in lower-tier cities to offer branded living experiences for customers pursuing personalization and quality, while at the same time driving consumption and upgraded tourism related accommodations. The company remains committed to diverting 40% of the funds towards China, of which $100 million will be toward customer experience, quality, and system improvements, and the balance to fuel further growth, talent development, competency building, and infrastructure development in the country.
OYO Hotels continues to bring its successful model of combining design, hospitality, and technological expertise, financial acumen and operational capabilities to real estate owners around the world, giving them the ability to get a higher return on investments, access easy financing opportunities, transform their hotels, and offer good quality customer service, thereby significantly increasing occupancy and profitability – in every OYO building.
For customers, OYO started with the belief that everyone deserves a beautifully designed, chic and comfortable living space. And everyone deserves a better life. The company has been committed to change the way people live, and did that by upgrading unbranded hotels into great quality living spaces and offering them at affordable prices in the best locations around the world.
The company is led by a strong global management team of seasoned leaders who have joined OYO’s mission in the last 12 months, including Aditya Ghosh, CEO – India & South Asia, Rohit Kapoor, CEO- New Real Estate Businesses, Sam Shih, COO – OYO China, Marcus Higgins, Head of Expansion – OYO U.S.A., Jeremy Sanders, Head – OYO U.K., Tadeus Ari Nugraha, Operations Head – Indonesia, Erica Perry Briody, VP – Talent Acquisition, OYO UK among others.
Known worldwide for its tech-driven full-scale led business model hospitality model, OYO Hotels has attracted some of the world’s leading investors, including Airbnb, SoftBank Vision Fund, Greenoak Capital, Sequoia Capital, and Hero Enterprise.