पत्रिका जगत Positive Journalism
Jaipur, February 7, 2019: OYO Hotels and Homes, South Asia’s largest, one of China’s top five, and the world’s fastest-growing chain of leased and franchised hotels, homes & spaces, shared details of its financial performance as of December 2018. Globally, with 458K rooms as at December 2018, with Realised Value run-rate of $1.8B, OYO is all set to be the world’s largest hotel chain. OYO continues to add more rooms than the top 3 Hotel chains combined. The company has seen a 4.3X Y-O-Y growth globally. OYO has also seen global stayed room nights (Annualised based on December run-rate) increase from 6m in December 2016 to 13m in December 2017 to a whopping 75m (99m based on December 2018 peak) in December 2018 (with the growth of 5.7x on Y-o-Y basis). The growth trend continues in FY 2018-19 with revenue estimates of Rs 1,400cr+.
The revenue growth has been driven by strong underlying business drivers notably increase in exclusive room supply, 5.7 times increase in stayed room nights and consistent increase in commission incomes. Partnering with OYO significantly improves the quality of standalone hotels and the occupancy from 25% to 65% on an average, thereby increasing yield on underutilized assets for asset owners.
“We have had a great 2018. Globally we have reached 458,000+ fully controlled leased and franchised keys (rooms) with a realized value run rate of $1.8B as at December 2018 representing a 4.3x Y-O-Y growth. OYO continues to invest in technology and to build long term capabilities while getting on-board, the top talent in the country. Total revenue for our global operations for FY 2018-19 is trending at Rs 1,400cr+ growing at 3.5x Y-o-Y and we estimate the further improvement in the economics of close to 50% with losses going to down to 10.4%.
Our capabilities are moats that allow us to stay true to our mission of quality living spaces. We are operational in eight countries. I am very happy that each of our other markets is growing exponentially and contributing to OYO’s journey in a unique manner.
However, we still believe that this is just the beginning and there’s a long way ahead of us. We will continue to maintain this momentum while redefining hospitality experience for people around the world. We aspire to be the largest hotel chain. The market is undoubtedly large and deep with continuing, significant gaps in demand and supply growth. We will continue to create more value for our asset owners.
OYO Hotels & Homes is a disruptor, in fact, I’d rather say, an innovator which is fundamentally re-industrializing how small-hotels were looked at and is bringing better living spaces for the common-man globally.” – Abhishek Gupta, Chief Financial Officer, OYO Hotels & Homes.
OYO’s capabilities are moats that allow it to stay true to its mission of creating quality living spaces.
Globally, OYO Hotels & Homes is now present in 500+ cities across eight countries – India, China, Malaysia, Nepal, UK, UAE, Indonesia, and the Philippines, hosting guests in over 13,000 franchised and leased hotels, over 6000 homes.
