Hospitality firm OYO has been surging ahead with expansion plans, making a series of strategic acquisitions and business restructurings since last year.
Having a hectic September, OYO has acquired a four-star hotel in Ahmedabad, a European data science firm Danamica and its founder Ritesh Agarwal got the nod from Competition Commission of India (CCI) to buyback shares worth $1.5 Billion.
Adding to the series of developments, the parent company of the hospitality chain, Oravel Stays, has sprouted two new joint venture(JV ) entities in partnership with its largest investor, SoftBank.
The JVs named Mountainia Developers and Hospitality Pvt Ltd and MyPreferred Transformation and Hospitality Pvt Ltd have set up by Oravel Stays in conjunction with SB Topaz, the latter being a SoftBank controlled company.
As per incorporation documents, Mountainia Developers will be used to acquire new hotel properties for the hotel chain. Its operations will include buying fully developed real estate setups and land acquisitions to develop new hotel properties as well.
Subject to a clause in the share subscription agreement, two Softbank executives, Saurabh Jalan and Hiroki Kimoto will also be on the board of directors for Mountania Developers.
OYO will deploy the second JV named MyPreferred Transformation and Hospitality for hotel refurbishing, renovations and rebranding as the name suggests.
As per an ET report, OYO has also registered a third entity named OYO Financial and Technology Services, apart from the two JVs with Softbank.
Although the object clause of the company couldn’t be accessed to ascertain its functions, it seems the company will be assisting the franchise owners and hotel partners of OYO with financial and IT services.
OYO’s move to divide its functions will help the company in its efforts to properly allocate focus and increase efficiency in all areas of operations.
Up until now, OYO had two entities Oravel Stays and Alcott Town Partners working in synergy to manage its various functions. Oravel Stays managed both Indian and international tech and operations of the tech side of budget hotel chains by distributing them online.
Moreover, on the operations front, Alcott Town Partners managed all the properties – hotels, townhouse, homestays, life, etc. and trained the staff with technical know-how and hotel management tactics.