TAKING HOSPITALITY TO GREATER HEIGHTS

Could you highlight your company’s achievements over the last 2-3 years?

How are you enabling franchise owners grow their business?

We have invested in four key competencies to enable our franchise growth:

Sophisticated leasing and franchising process: We have developed an app, Orbis, to scientifically identify and onboard strategic buildings within a shorter time period. The in-house app assists the team in identifying the right lead, pitching the right deals to owners and having the building transformed to OYO standards. All this work is performed with the help of the app within three meetings.
Best-in-class renovation capabilities: Our deep renovation capabilities have enabled us to add 64,000 exclusive keys to our chain every month globally. We have set a benchmark in transforming and renovating assets in a record time of 14 days – a stark contrast to the industry standard of up to 90 days. We utilise AI-led design approach while evaluating guest feedback and identifying their most-preferred designs.
Hotel operations: We offer customers good quality, affordable and predictable living experiences while empowering franchise partners with operational expertise through technological capabilities. Over 70% of the revenues in India come from repeat customers.
Higher yields for asset owners: Every hotel or asset that becomes a part of OYO’s chain witnesses an increase in average occupancy from 25% to 65% in a brief span of three months. We have a team of revenue managers who derive the best pricing mechanism with the help of advanced machine learning and AI tools. We enable asset owners to increase their earnings 16 times on an average.

How do you differentiate from the competition?

Our biggest differentiator is the full-stack fulfilment-led model, where we fully acquire hotels and homes on franchise, manchise or lease. We offer multiple app-based solutions to ensure hassle-free operations at our hotels while delivering quality assured experience to our guests. Every OYO hotel works on the OYO operating system offering features, including express check-in, check-out, online procurement, and inventory management. The OS further offers apps for housekeeping and audits as well as solutions for hotel management aspects like expense management, staff training and engagement along with performance reviews and incentives for the hotel staff. In addition, we offer apps like Property Manager, Co-OYO (owner’s app), Krypton, OYO Optimus, Orbis and OYO Rocket for smooth and seamless management of the franchise business. Further, we have over 26 OYO skill institutes where we train hundreds of hospitality enthusiasts every month.

What are your expansion plans?

Currently, OYO accounts for less than 1% of the 158 million+ rooms’ market that’s growing not just in size but also in terms of value. We have a long way to go. We are looking at the largest 15-20 markets of the world which are characterised by fragmented inventory. Our goal in these markets is to be bigger than the top 3-4 hotel chains combined. We have succeeded in executing this in India and are on a similar path in China. We will continue to explore opportunities in markets like Southeast Asia and the Middle East. In all, strong fundamentals of occupancy growth and asset additions will help maintain the momentum on our $1.8 billion net realisable value i.e. sales less cancellations and future bookings, growing at over 4.3 times worldwide.

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