OYO, which shut self-operated hotels just before the onset of the Covid-19 pandemic, is now actively seeking partnerships with real estate developers to identify properties for these hotels
OYO said it has already partnered with 30 realtors and started operations in over 35 hotels spread across cities like Delhi, Bengaluru, Hyderabad, Kolkata, Goa, Mumbai, and Chennai
Earlier this year, founder and CEO Ritesh Agarwal claimed that the IPO-bound hospitality unicorn was on track to report a profit of INR 16 Cr in Q2 FY24
IPO-bound hospitality unicorn oyo
has relaunched self-operated hotels more than two years after the business was halted.
Under its new ‘Prime Partner Program’, OYO said it would offer its “best managed” hotel operators the option to operate additional hotels and earn additional revenue without taking the risk of leasing or the overhead costs of starting a new hotel.
OYO said it is actively seeking partnerships with real estate developers to identify properties for these hotels.
During the pilot phase of the program, the company has already partnered with 30 realtors and started operations in over 35 hotels spread across cities like Delhi, Bengaluru, Hyderabad, Kolkata, Goa, Mumbai, and Chennai.
These operators under the new program will get dedicated relationship managers and access to OYO’s network of over 15,000 corporate accounts and over 10,000 travel agents, the company said in a statement.
These self-operated hotels will be tagged as ‘Managed by OYO’ on the app and website. Besides, the global hospitality major said it would closely monitor the hotel’s upkeep and customer reviews.
Under the program, the hotel owners can give out their property to a large organisation at a fixed rental, revenue sharing or management contract basis.
“The program recognises the evolving travel and hospitality landscape where hoteliers are looking at expansion and guests are seeking well-managed accommodations. By offering hoteliers and property owners the opportunity to participate in this program, OYO aims to create a win-win situation that benefits landlords, professional hotel operators as well as travellers,” Anuj Tejpal, chief merchant officer at OYO, said in the statement.
Most of the hotels under ‘Prime Partner Program’ will be onboarded under the company’s premium hotel offerings such as Townhouse, Townhouse Oak, and Collection O.
It is pertinent to note Inc42 reported earlier this year that OYO was eyeing tapping the growing Indian premium hospitality market and adding 1,800 more premium properties to its platform in 2023.
Just before the Covid-19 pandemic took its full shape in India, OYO shut down the self-operated hotel business model, most likely due to SoftBank’s pressure on the profitability front.
Soon after, the pandemic devastated the entire travel industry globally and OYO also had to scale down its operations in some high-growth geographies like the UK, Europe, Malaysia, Indonesia and the US.
However, OYO is once again back in these markets, with its focus on premium hotels and holiday homes.
OYO was also on track to report its first ever profitable quarter in Q2 FY24. In an internal mail sent to the leadership team of the company, OYO’s founder and CEO Ritesh Agarwal recently claimed that the startup will mark its “maiden profitable quarter” with a projected profit of INR 16 Cr in Q2.
The company reported a 38% narrowed loss of INR 1,286 Cr in FY23 on an operating revenue of INR 5,463 Cr.
Earlier this year, OYO reduced its IPO size to $400-$600 Mn from $1.2 Bn earlier and filed its DRHP with the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route.
