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With presence in 10K hotels, OYO now becomes China’s second largest hotel group


Riding high on economical living space offering, Softbank-backed hospitality firm OYO now claims to be the second largest hotel group in China.

In space of about 18 months, it has outrun traditional and established hotel chain brands such as Home Inn and Hanting, in the country.

OYO China now has a presence in 320 cities, with 10K hotels and 4.5 lakh rooms, the company said in a statement. It registered over 97% franchise contract renewal rate. Every day about 2 lakh rooms is occupied largely due to cheaper cost.

We deliver better living for middle-income people across the country. We have ensured that for the first time you can get a great living space in less than RMB 150 as well, said Sam Shih, COO, OYO China.

OYO China now commands about 2% of China accommodation market.

The company through brand building, cost optimisation and hiring talent has revolutionised the fragmented and legacy-driven budget hospitality space in China.

One of the major reasons for staller growth is OYO China commitment towards auditing room appearance, hotel, and food quality and crosschecks feedback received from guests.

OYO claims to be in constant touch with asset owners and partner franchisees to guide and direct corrective measures. It has been strict on its implementation of guidelines and takes strong measure when required. OYO remove the franchise from their inventory who don’t follow the guidelines despite interventions.

Last month, OYO said to delist 2 hotels and fired 25 employees. It has given warnings to over a hundred employees for misconduct and failure to meet the hotel standards.

Last year, Gurugram-headquartered hotel brand had kicked off operations in China in partnership with China Lodging Group. Entrackr had first reported the development.

In China, about 70% of its business happens through organic channels, including OYO app and digital platforms. Online travel operators also contribute 20% to the company’s revenue.

In 2018, OYO forayed into many international markets including the UK, Nepal, Dubai and China. It claims to have a presence in over 800 cities across 24 countries.

In the next three years, OYO aspires to become the largest hotel chain in the world.

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