Ritesh Agarwal-led OYO Hotels and Homes has strengthened its presence in Japan with expansion into more than 100 hotels across over 50 cities including Tokyo, Osaka and Kyoto.
In April, OYO has announced the partnership with Tokyo-based SoftBank Corp. and SoftBank Vision Fund. The new venture is led by Prasun Choudhary, VP Operations and Head South and East region at OYO as the operating partner.
SoftBank Corp had noted that its joint venture with OYO is scheduled to begin operations in Japan in September 2019. “It will conduct an innovative hotel business that leverages OYO’s hallmark features such as total consulting for hotels and AI-based dynamic pricing,” the Japanese conglomerate noted.
Ken Miyauchi, president and CEO of SoftBank Corp. had said, “Combining OYO’s most advanced business model with SoftBank Corp.’s knowledge of the Japanese market, we will provide brand-new hotel experience to travelers in Japan.”
Ritesh Agarwal, founder and CEO (Group), OYO Hotels and Homes, said, “OYO was started with a simple belief that everyone deserves a beautiful living space. The service launch with 100+ hotels in Japan is a step forward in that direction. We will continue to be invested in driving efficient growth in Japan and across the globe.”
OYO Hotels Japan aims to empower small and independent asset owners in Japan with its rapid transformation capabilities and integrated hotel/ryokan management system powered by advanced AI technology, which will help owners improve both their efficiency and profitability.
Prasun Choudhary, Operating Partner, OYO Hotels Japan, said, “The 100 hotel milestone, in a span of six months, is a big moment for us and further fuels our passion to continue to drive growth across the country while delivering quality customer service and empowering asset owners to run a sustainable business.”
The six-year-old company has a portfolio of more than 35,000 hotels and 125,000 vacation homes, and over 1.2 Mn rooms across 80 countries and 800 cities. Its verticals vary from holiday homes, casino hotel and coworking spaces to budget hotels, corporate stays and more.
OYO said it has seen a 3.8x YoY growth in revenue in Aug 2019 (vs. Aug 2018), with 1.2 Mn rooms under management across hotels and homes. The company said it has a strong balance sheet of $2 Bn across group companies, a significant part of which will be further invested in the business.
In its path to profitability, OYO is facing a hard time in its home ground with continuous protests by hotel owners, associations and customers.