South Asia: OYO Hotels & Homes has announced a commitment of ~INR 1400 crores (£150 million) for the India & South Asia business.
OYO Hotels & Homes – South Asia’s fastest-growing chain of hotels, homes and quality spaces – has done this 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 company has 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. 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.
Aditya Ghosh, CEO, India & South Asia business, 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.”
Ritesh Agarwal, founder & group CEO, added: “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.”
In the last 12 months OYO Hotels & Homes has acquired seven other brands – OYO Townhouse, OYO Home, Capital O, Collection O, SilverKey, Palette Resorts, and OYO LIFE in the housing rental space.
OYO Hotels & Homes will focus on capacity building and look at opportunities for both organic and inorganic growth in its aim to become the world’s largest hotel chain by 2023 and becoming one of the most impactful consumer brands in India and South Asia.
Aditya Ghosh said: “As we expand our presence in the market, consistency of quality is key. As a customer first company, we are heavily invested in ensuring customer responsiveness. Over 90+ customer-facing campaigns run month on month in South Asia, and our turnaround time across social media channels is 2.5 minutes. We believe great quality and repeat customers is the only long-term sustainable investment and hence, each of our brands including OYO hotels, Collection O hotels or OYO Townhouse are key in the years to come.”
Ritesh Agarwal added: “We are staring at a social revolution that manifests itself in terms of how a truly global brand out of India is not just reimagining hotels & reinventing living spaces, but in the process, enabling an entire ecosystem of micro, small and medium entrepreneurs as well as ancillary industries. All while creating hundreds of thousands of jobs opportunities. Having generated over 100,000 jobs in India alone through over 26 OSI’s, we are committed to making sure that the hospitality sector remains a driver of innovation and employment in the country with OYO Hotels and Homes as a key enabler of the same.”
As the India presence expands to over 259+ cities, 8,700+ buildings (hotels and homes) and 173,000+ rooms, an ‘innovating from India for the world’ approach has led to the launch of multiple industry-first tech solutions including the in-app SoS button.