OYO continues on expansion spree

Homegrown hospitality platform OYO is the midst of an aggressive phase of expansion. Just the last four weeks have seen the company mark its entry into the four-star premium hotel segment in India, test the waters in Mexico, roll out a tweaked business model in China and even buy a Las Vegas casino.
The company has been one of the fastest growing brands to call India home since its launch in 2013, with its largest networks currently operating in India and China. In fact, the company announced that it has now spread to over 500 cities in India, with 18,000 hotels on its platform in the country.

However, it’s the company’s overseas exploits that mark it out. “Not many start-ups from India have managed to make a mark in markets like the US and China. OYO is an exception here, though Ola Cabs has been doing well in markets like Australia and UK too,” said a venture capital executive.

It’s latest foray has been into the North American and Latin American markets. “Mexico is still in soft mode,” said one source, but the company has spread itself to over 110 hotels in more than 21 states in the United States since its launch in June this year. It also plans to spend around $300 million to continue expanding its operations in the country.

The company has already made its first purchase in the market last month, picking up the Hooters Casino Hotel for an undisclosed sum, with the hotel to now to rebranded and designed as Oyo Hotel & Casino Las Vegas. The 657-room, 35,000 square feet-large casino is to be managed by Highgate.

“We believe Las Vegas is an exciting city in which to invest as the market continues to evolve with projects such as the new Las Vegas Raiders NFL stadium and the $1 billion expansion of the Las Vegas Convention Center,” Abhinav Sinha, chief operating officer and OYO Hotels and Homes USA had said.
The hotel chain has also embarked on a hiring spree in India, with plans to hire 3,000 people across the country over the next six months, especially since it has opened up a few new segments including co-living spaces and the four-star premium hotel segment.

Trigger for growth
“The (premium) hotel segment holds a lot of promise for us given the rapid growth of the hospitality industry over the last few years,” Aditya Ghosh, chief executive (India and South Asia),OYO, said last week.