Indonesia turns third biggest market for SoftBank-backed OYO after China and India

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Updated: January 28, 2019 2:48 PM

OYO's launched its Indonesia operations in October 2018 with more than 30 hotels and 1,000 rooms in Jakarta, Surabaya, and Palembang.

oyo, oyo rooms, ritesh aggrawal, oyo rooms funding, oyo rooms seed funding, business news in hindiOYO has expanded to 150 hotels in 16 cities, witnessing a five-fold rise in its growth in Indonesia.

Popular hotel chain OYO has said that Southeast Asian nation, Indonesia has become its next large market after China and India in less than 3 months of foray in the country. OYO’s launched its Indonesia operations in October 2018 with more than 30 hotels and 1,000 rooms in Jakarta, Surabaya, and Palembang.

OYO has expanded to 150 hotels in 16 cities, witnessing a five-fold rise in its growth in Indonesia, the company said in a statement.

The company claimed of adding 70 hotels per month and is aiming at 100-city presence by end of 2019 in Indonesia.

“We entered Indonesia with the mindset of an Indonesian company. This localization had helped us in customizing our offering. We intend to invest over $100 million in this high growth market…and breaking into Bali over the next 11 months,” said OYO’s founder and group CEO Ritesh Agarwal.

Rishabh Gupta, Country Head, Indonesia, OYO Hotels and Homes explained,

“We’ve received an overwhelming response as over 70% of our hotels currently enjoy an 8+ rating across various booking platforms, said OYO Indonesia head, Rishabh Gupta.

Gupta said that the company has a local team of over 400 members and also 70 civil engineers to standardize existing properties to OYO’s standards in 20 days.

OYO reportedly partnered with Saudi Arabia’s Ministry of Haj and Umrah last week to give them access to OYO’s technology suite including OYO OS and Krypton technologies. The partnership will help the ministry to provide better hospitality experience in the holy cities of Makkah and Madinah.

The company is currently embroiled in the controversy over alleged mismanagement of contracts. Last week, over 200 hotels had reportedly ended their contracts with OYO pertaining to issues including contract mismanagement, arbitrary charges etc., however, the company refuted any such development.

OYO, which ventured into international markets in 2016, already has a presence in the UK, the UAE, China, Malaysia, and Nepal. It also ventured into the Philippines last week.

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