From a single hotel in 2013, when Ritesh Agarwal founded it, to more than 8,500 rooms, in 280-plus cities in the country, OYO is probably one of India’s largest hotel chains. Now it also has a significant presence in Malaysia, Nepal, the United Kingdom, Indonesia and China, making it perhaps one of Asia’s fastest growing chain of hotels, homes and living spaces. With Airbnb recently investing in it, the brand has received a further boost.
- One of the top five hotel chains in the country
- 2,60,000 rooms
- Exclusive rooms in 5,000-plus franchised, manchised and leased hotels
- Presence in 280-plus cities
Earlier this year, in January, OYO appointed Sam Shih as its Chief Operating Officer (COO) for China. He is responsible for the regional operations in OYO China that now operates in 280 cities in that country.
Excerpts from an email interview with Sam Shih about OYO’s plans for China.
Since OYO has appointed a COO in China, does this indicate its growing clout as a destination, for holiday/business?
There is a huge white space in the China hotel industry, with traditional hotel chain brands preferring to focus on premium to luxury segments as well as larger inventory hotels. OYO has the unique opportunity, to transform the budget hotel experience through standardised amenities and consistent service, while also helping the traveller get access to affordable and quality living spaces.
What are the company’s plans for China?
OYO Jiudian started its hotel operations in China in November 2017 with its first franchised hotel in Shenzhen and we received tremendous response from the people. This has helped us emerge as one of the top five hotel chains in China. Besides enabling better accommodation experiences for the middle-income people in the country, we have created over 1,00,000-plus jobs in the course of a year.
Over 6,000-plus ‘OYOpreneurs’ (young OYO corporate employees) and thousands of professionals associated with our chain have helped us get there. In 2019, our focus will be on strengthening our capabilities and becoming the number one hotel of choice. We also want to upgrade all forms of real estate and create the perfect space. We have committed approximately $600 million into strengthening our position in China. In 2019, we will continue to deliver a standardised, quality-assured and affordable stay experience to tourists and locals alike.
Is there a unique strategy for China?
There are more than 8,00,000 small budget hotels present in China, which are unbranded or part of the fragmented hotel industry running at low occupancies. There is immense opportunity available to transform these, improve the occupancies and revenue per available room, and help them deliver an accommodation experience which is at a par with the big hotel chains.
- Is present in more than 259 cities
- Has more than 8,700 buildings (hotels and homes) which translates to more than 173,000 rooms
- More than 4,50,000 heads rest on OYO pillows every night
- An OYO is booked every 0.75 seconds
We have been following a multi-fold strategy in China, with emphasis on localisation while customising the needs and offerings as per the requirements of our guests. We are offering quality accommodation at a unique price point between RMB 69 and RMB 199, with a focus on Tier 2 to Tier 6 towns, while providing impetus to the local economy.
What are the existing destinations?
Currently, OYO is present across 280-plus cities, including Suzhou, Nanjing, Qingdao, Yantai, Dalian, Harbin, Xian, Xining, Shenzhen, Kunming, Wuhan, Zhengzhou, Chengdu, Chongqing and many others. While we will continue to enter new cities, our focus will also be to go deeper in existing cities and increase market share.
- Komodo dragons can eat up to 80 per cent of their body weight in one meal
None of the OYO listings for China show up in a search.
OYO is a leading hotel operator and you can search us on Baidu and other leading local sites, map services and OTA channels. These contribute more than 15% of our demand today. We will continue to double the relationships with, and investments in, these channels.