Airbnb continues to weave its web in the hotel world. After buying the HotelTonightthe leading private flat rental company is to invest between 100 and 200 million dollars in the Indian hotel group Oyo. Airbnb joins other investors who have injected a billion euros into the development of this success story, including SoftBank, Sequoia Capital and China Lodging Group.
With sales of $1.8 billion in 2018, Oyo has become a "unicorn" in just ten years. From a single hotel in January 2013, Oyo now has more than 8,500 establishments and 450,000 rooms. This places the Indian hotelier among the world's top 10, with with the ambition of soon becoming number one. A goal within reach if Oyo continues its exponential growth. The group founded by Ritesh Agarwal - at the age of 18! - has gone from 13 million overnight stays in 2017 to 75 million in 2018, a nearly six-fold increase in one year. Another highlight: after 12 months in China, Oyo has become the country's third-largest hotel brand.
Covering 253 cities in India and almost as many in China, Oyo intends to increase its international presence. The hotelier is already present in Asia in Japan, Malaysia, Nepal, the Philippines, Thailand and Indonesia, as well as in Saudi Arabia and Dubai in the Middle East. Since September 2018, Oyo is also present in London with four establishments at present and no doubt more to come, as the group also aims to establish itself in Manchester, Birmingham, Glasgow and Edinburgh.
At the same time as developing more and more establishments, Oyo has begun to segment your offer last year. From budget hotels, the group now covers the mid-range with the O Collection aimed at business travellers and the more leisure-oriented Oyo TownHouses, long business stays with Oyo SilverKey, top-of-the-range resorts with Pallete, youth hostels with Oyo Living and holiday rentals with Oyo Homes.
Le secret of this success is due to Oyo's franchise-like development model. The Indian hotelier offers hotel or building owners the chance to transform their properties in just 14 days and convert them to the brand's standards. To achieve this, Oyo relies on a team of design experts, including civil engineers, architects and designers, the result being establishments that are in tune with the times and in tune with the expectations of millennials.
This dazzling development is also a technological aspect for both hoteliers and guests. While owners have applications for managing the property and operations of their establishment - check in/check out, room service - the application for guests allows them to book rooms, order room service, book a taxi and search for nearby restaurants, in addition to a concierge service. In some Indian cities, Oyo has also started to develop an assistance and safety service with an SOS button integrated into the app.
"Our ambition is to change the way people live away from home"Oyo's vision is in line with that of Airbnb. Hence the many potential synergies. "Emerging markets such as India and China are among the regions where Airbnb's growth is strongest, and this growth is increasingly driven by tourism to and from these markets."said Greg Greeley, President of the Group's Homes division, quoted by Reuters. According to the same source, Maninder Gulati, Oyo's head of global strategy, believes that "Airbnb's global presence and access to local communities will open up new opportunities for OYO Hotels & Homes." Given the growth of these two players, the pressure is mounting on the incumbent hoteliers.
