Oyo Hotels & Homes published a statement hailing itself the world’s third largest hotel chain by room count as of June 2019, while staking claim as the fastest-growing chain of hotels, homes and other accommodation spaces.
The India-based company claims it has left several “traditional and long-standing hospitality brands” trailing behind it. In a span of six years, Oyo has expanded its presence to 800+ cities, over 23,000 Oyo-branded hotels and 850,000 rooms, surpassing the scale of traditional and established hotel chain brands in the world, it said in the statement.
The portfolio combines fully operated real estate comprising of more than 23,000 hotels and 46,000 vacation homes.
Oyo along with Vacation Homes categories managed by the company under Oyo Homes, Belvilla and Dancenter brands can be found in more than 800 cities in 80 countries.
This growth is backed by a strong balance sheet of about US$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.
Oyo also sees the UK and US as strong growth drivers, with 85 hotels in 25 destinations in the former, and 68 hotels across 40 US cities.
The company also claims to have created over 300,000 direct and indirect job opportunities across India, China, US, and the UK.
The recent acquisition of @Leisure has further helped strengthen its footing in the vacation home segment in Europe.
In China, with second-tier cities at its core, Oyo Hotels’ footprint spans tier-two to tier-six 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, all while aiming to drive consumption and upgraded tourism related accommodations.
The company remains committed to diverting 40 per cent of funds towards China, of which US$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 present property owners a proposition combining design, hospitality, and technological expertise, 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.
The company is led by a 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 USA; Jeremy Sanders, head – OYO UK; Tadeus Ari Nugraha, operations head – Indonesia; and Erica Perry Briody, vice president – talent acquisition, OYO UK among others.
Commenting on the development, Ritesh Agarwal, founder & CEO (Group), Oyo Hotels & Homes, said: “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.
“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 per cent in occupancy, a 2.5-times 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.”