The largest hotel chain in India has targeted to achieve global domination.
Rooms are being added to its platform much faster than the total count of the top three hotel chains of the world, claims the Indian firm OYO, launched just five years ago in the form of an online platform that allowed its users to book budget hotels in India.
“By 2023 we want to be the largest and most preferred hotel chain in the world,” an OYO spokesperson of the company said in a television interview recently.
And in that very short period of just 5 years, franchises hotels in global cities including London, Beijing, Shanghai and Kuala Lumpur are currently owned by the company which has its headquarters in Gurgaon in India which is a tech city on the outskirts of the Indian capital city of Delhi.
The company currently operates almost 9,000 hotels and has 170,000 rooms throughout India. In total, the company offers 460,000 rooms in eight countries including its international business. However that number is still way less than the total number of rooms that are currently operated by the global market leader Marriott which currently operates nearly 1.3 million rooms throughout the world as of September 2018.
However the pace of growth of the Indian startup is phenomenal. Compared to about 6 million room bookings in 2016, the startup reached a total of 75 million room booking till the end of 2017.
The company also has managed to grab the investment attention – and ultimately investments from some of the most well known investors globally which include names such as SoftBank – the Japanese tech giant which also has investments in companies like Uber, WeWork, Slack and in a number of other most promising start-ups in India.
Millions of dollars into OYO have been invested by SoftBank already mostly from its very large Vision Fund that it had launched together with Saudi Arabia. That funding was the leading investment that the OYO got from its latest round of investment through which the company managed to raise $1 billion and set the market valuation of the company at $5 billion.
Most of the money that OYO raised form the finding has been put to use for its global expansion plans. The company has launched its app in many new markets and has signed agreements with hotels in the United Kingdom and Indonesia last year and the Philippines earlier this year. Properties in Malaysia, Nepal and the United Arab Emirates are also offered by the company.
The company launched its app in China in 2017 where, according to the claims of the company, it is one of the top five hospitality chains. According to the company, it now operates or has agreements with more than 5,000 hotels across 280 cities in the Chinese market.
(Adapted from CNN.com)