Oyo Hotels enters Indonesia with US$100m in investment war chest

Oyo Hotels is planning to invest US$100 million in Indonesia and expand its presence to over 35 cities by 2019.

The India-based budget chain will start operations with 30 properties operated under leasing or franchise agreements in Jakarta, Surabaya and Palembang.

Oyo expands its brand into Indonesia; Oyo Rooms Thane Station, Mumbai pictured

It will also introduce its tech-based solutions for both guests and asset owners while generating job opportunities for locals in various fields including housekeeping, front office, F&B, general management, civil engineering and more.

Commenting on the developments, Ritesh Agarwal, founder and CEO, Oyo, said: “We’ve been at the forefront of the small and budget hotels revolution in India, China, Malaysia and Nepal, and have recently forayed into the UK and the UAE. Indonesia is one of the top choices for both global and Indian travellers, and with our market learnings and expertise we are ready to tap this opportunity.

“We intend to invest over US$100 million in this high growth market and plan to expand to the top 35 cities in Indonesia, including Yogyakarta, Bandung and Bali, over the next 15 months.”

These properties will be operated under models of manachise, lease with full inventory control, similar to other markets like India and China.

Rishabh Gupta, country head, Oyo Hotels, Indonesia, added: “Indonesia is an attractive market with sizeable Internet and mobile presence, which complements our approach. We’ve received an overwhelming response to Oyo Hotels offerings in the country since our soft launch and look forward to hosting more guests in the coming years.”

Ibu Lidya, asset owner of Oyo Sarkawi Residence, Indonesia, manchised her asset with Oyo Hotels four months back when it was “struggling with 28 per cent occupancy”, and has since seen the number rise to 92 per cent.

She shared that there are plans to buy a new asset for Oyo Hotels.

The Oyo chain is currently present in over 350 cities with over 12,000 asset owners spread across six countries including India, China, Malaysia, Nepal, the UK, the UAE and now Indonesia.

Touted the fastest growing accommodation chain in the world, Oyo Hotels has pioneered the world’s first full stack technology led hospitality model and has over 270,000 franchised and leased rooms as a part of the chain. Oyo Hotels host more than 125,000 stayed room nights on a single day.

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