पत्रिका जगत Positive Journalism
Jaipur, February 7, 2019: OYO Hotels & Homes, South Asia’s biggest, one of China’s top 3, and the world’s fastest-growing chain of leased and franchised hotels, homes & living spaces, reported India financial results for FY 2017-2018. As per consolidated audited financials, OYO India has witnessed a 3.5x revenue growth, reporting an operating revenue of Rs 416cr, compared to Rs 120cr reported for FY 2016-17. The revenue growth has been driven by strong underlying business drivers notably increase in exclusive room supply, two times increase in stayed room nights and consistent margin expansion. Partnering with OYO significantly improves the quality of the standalone hotel and improves occupancy from 25% to 65% on an average, increasing the yield on underutilized assets for asset owners. The growth trend continues in FY 2018-19 with revenue estimates of Rs 1,400cr+.
The robust business model with limited marketing spend generates double-digit positive contribution margins. OYO continues to invest in technology and build long term capabilities while getting onboard the top talent in the country. Margin expansion and a high degree of operating leverage in the business model has resulted in more than 50% improvement in economics with the losses as a % of realised value coming down from 44.5% in FY 2016-17 to 20.3% in FY 2017-18. In FY 2018-19, OYO estimates further improvement in the economics of close to 50%, with losses going to down to 10.4% (Estimates).
OYO’s capabilities are moats that allow it to stay true to its mission of creating quality living spaces.
93%+ of OYO’s demand comes through its own channels signifying low dependence on 3rd party online travel agents (OTAs). Repeat customers for OYO generated 73% of revenue in Q4 2018 (Oct-Dec) bringing in an industry leading metric. This can be attributed to a seamless product experience, efficient operations, and solid distribution capabilities.
Globally, OYO Hotels & Homes is now present in 500+ cities across eight other countries – India, China, Malaysia, Nepal, UK, UAE, Indonesia, and the Philippines, hosting guests in over 13,000 franchised and leased hotels, over 6000 homes. The company has over 450,000+ fully controlled leased and franchised keys as at December 2018 with realized value run-rate of $ 1.8B (4.3x Y-O-Y growth).
*Realised run rate means – Realised value net off cancellations, discounts and forward bookings annualised on the basis of December of the respective year.
*Advocates are defined as guests, who have stayed minimum 5 times at OYO in last 6 months with minimum 3 bookings made using our app
About OYO Hotels & Homes:
OYO Hotels & Homes is South Asia’s largest, one of China’s top five, and the world’s fastest-growing chain of hotels, homes, and spaces, with footprints in more than 500 cities across India, China, Malaysia, Nepal, the UK, the UAE, Indonesia and more recently the Philippines. OYO Hotels & Homes is one of a kind and has pioneered the world’s first full-scale technology-led business model in the hospitality and real estate industry. It currently operates over 13,000 franchised or leased hotels and over 6,000 homes as part of its chain. In India, OYO is present in over 180 cities, and hosts guests in over 8700+ properties, in over 170,000 rooms. OYO is backed by leading investors, the SoftBank Group, Sequoia India, Lightspeed India, Hero Enterprise and China Lodging Group. For more information, log on to https://www.oyorooms.com/
