OYO Everywhere


Franchising isn’t new as a business model. 

OYO has a seductive model of renovating budget hotels, running them efficiently through technology, and marketing them directly to consumers. ~ Sean O'Neill 

OYO stands apart from traditional franchising in three ways:

  1. It generates most of its demand directly. Most of its customers book rooms via its mobile app. 
  2. It also uses technology to wring efficiencies out of various parts of the process, from back-end reservation management to the front-end management of inventory for furniture and amenities.
  3. Lastly, Oyo focuses on the budget market, pinpointing real estate assets that could be far more profitable if run as budget hotels than in how they’re currently being used at their locations.

In India, the occupancy rate of a small budget hotel in India typically increases from around 25 percent to about 65 percent within a month after joining, the company claimed.

Started in 2013, Oyo claims to be the world's second-largest hotel operator with a portfolio of more than 12 million rooms across 80 countries. Earlier this month, the Gurugram-based company said it is raising $1.5 billion in its largest ever fundraising from Agarwal and main investor Japan's SoftBank Group, valuing the company at $10 billion.

SoftBank Group had, last year, pumped in $1 billion into Oyo through its Vision Fund.

https://asia.nikkei.com/Business/Startups/India-watchdog-probes-SoftBank-backed-Oyo

Malaysia is the center of universe for ASEAN. 

The news below was published 25th Jun 2018. We do see OYO everywhere now in 2019.

OYO Hotels makes Malaysia stepping stone to region 

https://www.thestar.com.my/business/smebiz/2018/06/25/oyo-hotels-makes-malaysia-stepping-stone-to-region

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