OYO Hotels Enters Indonesia, Strengthens Its Southeast Asia Presence

Ritesh Agarwal’s $693 Mn OYO Share Buy Back Plan Gets Board Approval

OYO Hotels Founder Ritesh Agarwal. Photo Credit: Televisor

SUMMARY

It has announced to invest $100 Mn to launch its hospitality service in over 35 cities in Indonesia over the next 15 months

The startup aims to create over 60K direct and indirect livelihood opportunities in Indonesia

By 2020, OYO hotels plans to create over 60,000 livelihood opportunities

OYO Hotels has launched its hotel chain in three cities of Indonesia — Jakarta, Surabaya, and Palembang — bringing 30 properties, as the company aims to expand its presence in the Southeast Asian hospitality market.

It has further announced to invest $100 Mn to launch its hospitality operations over 35 cities in Indonesia — including Yogyakarta, Bandung, Bali — over the next 15 months.

The hotel chain aggregator is already present across India, China, Malaysia, Nepal, the UK and the UAE.

“Indonesia is one of the top choices for both global and Indian travelers, and with our market learning and expertise we are ready to tap this opportunity,” OYO founder and CEO Ritesh Agarwal said in a statement.

The founder claims to have enabled over 100K job opportunities in South Asia, and looks forward to creating over 60K direct and indirect livelihood opportunities in Indonesia as well.

What’s More In OYO’s Indonesia Expansion

OYO Hotels has announced over 30 full-inventory, both franchised and operated hotels, and over 1,000 rooms to asset owners, property investors and travelers across three Indonesian cities.

One of the OYO Hotel’s asset owner in Indonesia, Ibu Lidya of Sarkawi Residence, who manchised his asset with OYO Hotels four months back, said, “I was struggling with 28% occupancy. After joining OYO Hotels, I renovated my property, and now we are at 92% occupancy, regularly.”

According to OYO Hotels Indonesia central operations head Tadeus Nugraha, currently, for every three rooms that the hotel chain onboards, it creates one livelihood opportunity.

Launched in May 2013, OYO is currently present in over 350 cities with over 12,000 asset owners spread across India, China, Malaysia, Nepal, the UK, the UAE and now Indonesia. It has over 270K franchised and leased rooms as a part of the chain. It claims to host more than 125K stayed room nights every single day.

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