OYO Hospitality and Homes recently announced their decision to invest 1,400 Crore INR in their India and South Asia business. Their main aim behind this is to improve customer experience, further expand their business and also increase asset owner success. With this announcement, the company also revealed the launch of a new sub-brand, Collection O. OYO hotels already have a few sub-brands in their arsenal, namely Townhouse and Flagship, which are more upscale than their regular properties.
Talking about this, Mr Aditya Ghosh, the CEO of India and South Asia business, “Key priorities as identified by the business for the year include delivering superior quality of product and service for every Oyo brand with a focus on safety and security, winning hearts and minds while expanding our presence deep and wide, a focused fast-paced growth while making partnering with Oyo the most attractive entrepreneurial opportunity for asset owners, a greater and deeper engagement among all Oyopreneurs and continuously evolve to become the most-loved hotel brand. Today, with the further investment of Rs 1,400 crore and the launch of mid-market brand Collection O hotels, I think we are all set to ensure our customers get the best experience and prices like always – but just a little better than yesterday. “
Ritesh Agarwal, the Founder, and CEO of OYO, also talked about this development. He said “With a strong balance sheet, today we can go to more places than ever, introduce new categories, invest in our assets, while maintaining our high-quality standards, without raising any further capital. Oyo was started with a simple mission of bringing beautiful living spaces for everyone. Today, as the world’s seventh-largest hotel chain, we are firmly moving towards our goal of bringing these great experiences at unbeatable prices to guests worldwide. We are committing over Rs 1,400 crore for technology investments, renovation, and managing investments for the calendar year, and will provide more, if needed, to help the team ensure continued economically efficient growth.”
While talking about OYO’s success, Mr. Agarwal also talked about how the brand’s losses have reduced by a whopping 45%, and how they continue to see such reductions every year. With their recent acquisition of Fresh Menu, we can expect this trend to continue. As 93% of OYO’s revenue is generated by repeat customers and word-of-mouth, adding value to their hospitality through food is a great idea for the brand.