Global growth crosses half a million rooms mark
● Expands reach and improves accessibility: Expands presence in India to over 259+ cities, 8700+ buildings (hotels and homes) and 173,000+ rooms
● An OYO for everyone With Collection O launch, India hotels brand portfolio alone to grow to 6 including OYORooms, Townhouse, SilverKey, Capital O, Palette Resorts. In the homestay segment, OYO Home has seen a 5X growth in 2018
● Technology for safety: Launches industry-first in-app SoS button for emergency assistance with options to contact the 24×7 OYO Safety response team as well as local law enforcement authorities along with consistent improvement in customer experience leading to over 93% sales from repeat or word-of-mouth customers
● Asset owner success: Launching several initiatives targeted at asset owners, with the objective of making franchising with OYO an attractive entrepreneurial experience and continuing its success of highest-in-industry retention rates
March 12, 2019: OYO Hotels & Homes – South Asia’s largest, and world’s fastest-growing chain of hotels, homes and quality spaces – today announced a commitment of ~INR 1400 crores ($ 200mn) for the India & South Asia business, as part of its efforts to further double down on its expansion plans, improve customer experience and ensure increase in continued asset owner success. The idea is to further deepen and widen presence across the home country while focusing on aggressive capacity building to bring the choice of a beautiful living space of an OYO hotel to every corner of the country. The company today also announced the addition of Collection O hotels to its existing portfolio of the budget- to mid-segment hotel chain brands while introducing an in-app SOS button that activates on check-in- a first in the hospitality industry. Currently, over 93% of OYO’s sales are from repeat or word-of-mouth customers. With the additional funding, OYO Hotels & Homes furthers its commitment to deliver consistent improvement in customer experience, across its brands.
Referring to the India & South Asia business, Aditya Ghosh, CEO, India & South Asia said, “The focus on growing and deepening presence in India & South Asia is relentless. Key priorities as identified by the business for the year include delivering superior quality of product and service for every OYO brand with a focus on safety and security, winning hearts and minds while expanding our presence deep and wide, a focused fast-paced growth while making partnering with OYO the most attractive entrepreneurial opportunity for asset owners, a greater and deeper engagement among all OYOpreneurs and continuously evolve to become the most-loved hotel brand. Today, with the further investment of INR 1,400 crores and the launch of mid-market brand Collection O hotels, I think we are all set to ensure our customers get the best experience and prices like always – but just a little better than yesterday. “
PAT & FINANCIALS
Invests ~INR 1400 crores in India business
On the back of a strong movement in fundamentals year-on-year, OYO Hotels & Homes today is poised to take on a larger role both in India & South Asia as well as in its other home markets & globally, as part of the brand’s vision to become the world’s largest hotel chain by 2023.
● The company aims to focus on investing and franchise building to take advantage of the global ~$3.6trn accommodation market opportunity rather than chase short-term goals like profitability;
● Improvement in economics is ongoing, however, with losses as a percentage of realised value (OYO Hotels’ sales run rate) reducing year-on-year from 44.5% in FY 2016-17 to 20.3% in FY 2017-18. In FY 2018-19, OYO estimates further improvement in the economics of close to 50%, with losses going down to 10.4% (Estimates).
● Globally, OYO Hotels & Homes is now present in 10 countries, over 500 cities, and hosts millions of guests from around the world in over 18,000 buildings (hotels & homes) and over 515,000 rooms with OYO Hotels’ sales run-rate at December ended 2018 at $1.8 bn – growing 4.3x yoy.
Ritesh Agarwal, Founder & Group CEO, stated, “With a strong balance sheet, today we can go to more places than ever, introduce new categories, invest in our assets, while maintaining our high-quality standards, without raising any further capital. OYO was started with a simple mission of bringing beautiful living spaces for everyone. Today, as the world’s seventh-largest hotel chain, we are firmly moving towards our goal of bringing these great experiences at unbeatable prices to guests worldwide. India & South Asia is our home market and the management strongly believes that we are firmly on the path of becoming one of the largest consumer brands in the nation. This is backed by OYO being the largest chain by rooms and sales; a leader in occupancy with strong customer and asset owner fundamentals; and backed by an incredible leadership team led by Aditya at the helm. We are committing over INR 1,400 crores for technology investments, renovation, and managing investments for the calendar year, and will provide more, if needed, to help the team ensure continued economically efficient growth.”
GO DEEP AND PLOUGH WIDE
Expands reach and improves accessibility, etches footprints in 81+ cities in India in 2018
OYO Hotels & Homes expands presence in India to over 259+ cities, 8700+ buildings (hotels and homes) and 173,000+ rooms. In 2018 itself, OYO added over 81 cities to its footprints. The idea is to have an OYO anywhere, and for everyone. OYO Hotels’ sales run-rate globally at December ended 2018 was at $1.8 bn – growing at 4.3x – and India was a large part at $1.2 bn, growing at 3x with 50% PAT improvement annually.