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OYO Hotels showing dramatic growth in China

Date:2018-11-30 16:57Source: ReadingNumber: Times

Gurugram-based and Softbank-backed (to the tune of USD 1 billion) OYO began operating in China in November 2017, and now

Gurugram-based and Softbank-backed (to the tune of USD 1 billion) OYO began operating in China in November 2017, and now has properties in major cities like Hangzhou, Xian, Nanjing, Guangzhou, Chengdu, Shenzhen, Xiamen and Kunming.

“During our last round of funding, we had committed approximately USD 600 million to the China market, of which USD 300 million will be used for renovation and infrastructure investments,” said OYO Hotels and Homes Founder and Group CEO Ritesh Agarwal. He noted additional investment will help the company drive the next wave of growth in China, which is already ahead of India, he claimed.

In order to attract both guests and owners to its platform, OYO launched six OYO Skill Institutes in Shenzhen, Xian and Suzhou, with more in the pipeline. These institutes, the company said, will help "fuel the hospitality ecosystem" in China. In total, the company has has trained 924 people in 76 cities with the help of two regional training managers and eight internal trainers.

The company has dealt with the complexities of the Chinese market by giving wide autonomy to its local managers, Agarwal told the Financial Times. “We operate like a Chinese company, not a global company operating in China,” he said. 

After Malaysia and Nepal, China is OYO’s third overseas market. The company currently has more than 12,000 franchised or leased hotels and over 3,000 homes as a part of its chain. 

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