OYO rooms are India’s considerably biggest hospitality company comprising mainly of budget standing hotels. Ritesh Agarwal is the founder of the organization in the year 2013 and since then it has risen by eight thousand five hundred hotels in two hundred and thirty cities in countries like India, Nepal, China, Malaysia, Indonesia, UAE. An eighteen-year-old boy established a website named Oravel stays which modified enlistment and booking of budget adjustments.
Over a period of three months full of uninterrupted research and continuous persistence in more than hundred bed and food homes, guest houses, small hotels he swiveled Oravel to OYO in the year 2013. Generally OYO partners with different hotels to render a healthy and comfortable guest experience across the scape of cities.
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Within a short time span of setting up Oravel Stays, Ritesh Agarwal received a conceding of hundred thousand dollars becoming a part of Thiel Fellowship from Peter Thiel. In the year 2015, OYO raised a round of twenty-four million dollars of financial backing from Sequoia Capital, Lightspeed venture partners, DSG consumer partner, and Greenoaks Capital. After five months OYO raised again another hundred million dollars from Softbank Group. That was a living investor. After a year OYO raised another ninety million dollars from Softbank Group, Innoven Capital and existent investors around. Nearly one year later OYO officially announced that it has closed a two hundred and fifty million dollar round of funding forwarded by Softbank Group, new investor Hero enterprises led by Greenoaks capital Sunil Kant Munjal, Light speed Ventue Partners and Sequoia Capital. And on around the same time, China Lodging made a very planned and strategic investment of ten million dollars in OYO.
On the last times of 2017, OYO launched OYO home, a marketing place for short spanned management lease. The new founded OYO home possesses an active presence in more than ten leisure destinations of India. Some of them are Goa, Shimla, Kerala, Udaipur, and Pondicherry. On the month of April 2018, OYO launched its first international home in Dubai.
Future Ambition Rooms –
As per founder Ritesh Agarwal, the five-year-old startup for booking hotel rooms is planning and aiming to become the largest hotel chain by the year 2023. It is expanding its business in different countries like South East Asia, and different regions like the middle-east and Europe. While sharing its journey Ritesh states that OYO which began with one hotel in Gurgaon according to the statistics of 2013 has now grown into more than three hundred and thirty thousand rooms in five hundred cities which are campaigning globally. Initially, it started with developing its business in India but now it is running smoothly in China as well. In India, it is spread out and operates in one hundred and forty-three thousand rooms, all together in hundred-eighty cities. In China, the cognitive operation was started in last November and already it is expanded over in two hundred and sixty-five cities with an all total room number of hundred eighty thousand.
His firm and strong belief intend him to declare, ”Our belief is that, if we just keep opening fifty thousand keys every month, then by 2023 we would have opened roughly two and a half million rooms more, which will be at least around two times of what the world’s largest hotel chain is today.”. It was told in an interview.
After traveling India in a very low budget on the year 2013 Ritesh founded Oyo. The other expansions of the organization fall in on Malaysia, Nepal, and Britain. Generally, as a customary procedure, Oyo signs in hotel owners and then trains their staff and starts on upgrading toiletries, bathroom fittings and linens. Afterward, it brings on board the hotel website and the travelers book the room accommodation from the internet and through this Oyo earns a twenty-five percent commission.
As a gross count, the response was ninety percent from the repeat customers which accumulates that three years back India’s stand apart growth was 1.6 times and last year the growth was 2.3 times. This year the trending hope will be three times and in the upcoming fiscal years, we wish it to be higher than three times. So with the progress including all, we can see that we are growing faster on a larger basis for the network effect.
The founder further added that Oyo is opening around forty thousand franchise in China every month. Those are leased rooms. He projects that the occupancy rate will go up from twenty-five percent to approximately seventy percent within three months of onboarding on the platform. Besides China Oyo has also despoiled in the United Kingdom, opening four assets up till now but substantially there are more lineups in the upcoming weeks. It has also started its venture in Indonesia and Malaysia.
He shared how to broaden up the market and proposed that in UAE regions they are inquiring and they consider the Dubai market is a place where they can also invest much. Along with Dubai, they will also be expanding in Abu Dhabi, Sharjah and so on. From their position and linear perspective, the previous three markets will assist to open in South East Asian, Middle Eastern and European markets. And they shine the light on opening more markets once they research and invest their time deep enough into the core countries.
As far as the progress is concerned Oyo is speculating and increasing business in the different global region, so there remains a handsome possibility of it becoming the largest hotel chain within the next three-four years.