Indian hospitality startup OYO Hotels and Homes have taken the lead over Intercontinental Hotels Group, bagging the position of third-largest hotel chain the world, in terms of room count, as of June 2019. In just a span of 6 years, the company has managed to not only launch itself but also conquered over the hospitality sector and expanded graciously.
Today, OYO rooms boast a spectacular room count of over 850,000 rooms, casting a presence in over 800 cities and more than 23,000 OYO-branded hotels.
Here are two solid reasons why and how Oyo Rooms has been able to accomplish this:
Oyo Room’s Smart Balance Sheet
OYO currently has around $1.5 billion available to further fuel its growth, complying majorly to its rapid success in China with a presence in 337 cities and over 500,000 rooms. A significant part of its funds is being invested in the business as the company focuses on maintaining its growth momentum across geographies.
Over 500,000 heads rest on Oyo hotel pillows daily today. Not just China, OYO has managed to expand its reach over in 80 cities with over 20,000 rooms and 720 hotels presence in Indonesia and other regions in Asia. It holds 25 destinations and over 85 hotels in the UK and more recently in the U.S., it holds a presence in 40 cities and over 68 hotels.
OYO will spend $300 million out of the $1.5 billion towards the US business. In the last six years, it has created over 300,000 direct and indirect job opportunities across India, China, the US, and the UK and will continue to support the growth of the hospitality, travel and tourism industry around the world.
OYO’s Massive Investments In China: $600 Million War Chest
We’d brought in to you OYO’s grand success in expanding into the Chinese market and securing the position of 2nd biggest hotel chain in China. On top of that, it created more than 100,000 jobs in the region. The company owes a huge part of its success to its phenomenal growth in China and thus, remains committed to diverting 40% of its $1.5 billion, which is $600 million towards the Chinese business.
Out of this $600 million, it will invest $100 million toward building better customer experience, quality, and system improvement. The remaining amount out of $100 million will be allocated towards further growth, talent development, competency building, and infrastructure development in the country.
The US and Europe are key growth markets with London, and Dallas, amongst others, emerging as top destinations for OYO. In India, the company has 200,000 rooms at 10,000 hotels in 300 cities.
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