India’s largest hospitality company OYO, consisting mainly of budget hotels announced committing around Rs 1,400 crore (around $200 million ) for its India and South Asia presence in 2019 On Tuesday. OYO was founded in 2013 by CEO Ritesh Agarwal.
The company also announced the launch of Collection O hotels, adding it to its existing portfolio of the budget- to mid-segment hotel chain brands. As of now, there as 12 hotels under the Collection O offering. Its other offerings include — OYORooms, Townhouse, SilverKey, Capital O, Palette Resorts.
Reportedly OYO planned in such a way, to double down on its expansion plans, and improve its back-end technology. The company also reiterated its ambitious plan to be the largest hotel chain in the world by 2023.
OYO Hotels’ sales run-rate globally at December ended 2018 was at $1.8 Bn – growing at 4.3X – and its India business was growing at 3X with a sales run-rate of $1.2 bn annually.
“The company aims to focus on investing and franchise building to take advantage of the global $3.6 Tn accommodation market opportunity rather than chase short-term goals like profitability,” the company said.
OYO currently has 173,000+ rooms spread over 259 cities in India. In recent times, it has also expanded beyond India borders and has operations in 500 cities spread across 10 countries with half a million rooms listed.