Oyo’s strategy in China, which it counts as its core market alongside India, is to focus on lower-tier cities.
Oyo Hotels & Homes on Tuesday announced its plans to spend $100 million, of the $600-million funds allocated for China, towards quality and system improvements and customer services. The Gurgaon-based company said it had hired over 10,000 people and provided jobs to over 20,000 Chinese hospitality enthusiasts.
Oyo’s strategy in China, which it counts as its core market alongside India, is to focus on lower-tier cities. “With Tier-II cities at its core, Oyo Hotels’ chain extends deep into China’s Tier-II to Tier-VI cities. It has expanded its roots deep in lower-tier cities to offer branded living experiences for customers while at the same time driving consumption and upgraded tourism related accommodations, similar to Pinduoduo and other Tier-II-focused companies in the middle kingdom,” the company said.
Oyo claimed to have become the largest single-hotel brand in China and said it continued to maintain the second spot as a hotel chain.
Experts said Oyo’s partnership with Airbnb will add to Oyo’s growth in China. It will lead to synergies between the two in a country where Oyo is operating in more than 337 cities with 500,000 rooms. The US-based home-sharing firm invested $75 million in Oyo earlier this year.
Having already closed a $1-billion funding round, led by SoftBank and others, Oyo is reportedly in talks with investors for another $1-billion funding round.
Following the partnership with Amsterdam-based @Leisure Group, OYO is currently present in more than 800 cities in over 80 countries.