Indian budget accommodation hotel chain OYO has emerged as one of the top five hotel chains in China after just one year of operations in the country.
Indian budget accommodation hotel chain OYO has emerged as one of the top five hotel chains in China after just one year of operations in the country, the company claimed in a statement. OYO has more than 1,80,000 franchised and leased rooms and more than 4,000 hotels under multiple formats including franchised and leased in China, the statement added.
“China’s burgeoning $150 billion hotel industry will continue surging ahead despite being fragmented. With this economic boom, there’s a steep rise in the middle-income group where more than 500 million Chinese locals scout for good-quality accommodation at affordable prices,” said OYO’s founder and group CEO Ritesh Agarwal.
OYO is currently present in cities like Hangzhou, Xian, Guangzhou, Chengdu, Shenzhen, and Xiamen. Currently, it has over 5,500 employees in China, the company said. “During our last round of funding, we had committed approx $600 million to the China market, of which $300 million will be used for renovation and infrastructure investments,” Agarwal said.
OYO is amongst the latest unicorns in India, valued at $5 billion by some estimated, with $1 billion funding round led by Japan’s SoftBank in September this year. This additional investment will help OYO drive the next wave of growth in China, which is already ahead of India, that too in a much shorter span, he added.
OYO has also launched six OYO Skill Institutes in Shenzhen, Xi’an, Suzhou even as more are in the pipeline. The company claimed of training 924 people in 76 cities while creating more than 60,000 livelihood opportunities in China’s hospitality sector.
After Malaysia and Nepal, China is OYO’s third overseas market. It currently has over 12,000 franchised or leased hotels and over 3,000 homes as a part of its chain. It also launched operations into the United Arab Emirates in October this year. Going forward, it is planning to foray into the UK and European markets.