OYO Hotels & Homes, the world’s sixth largest and fastest-growing chain of leased and franchised hotels, homes & living spaces, announced that it has now become the second-largest hotel group and company in China.
In a short span of 1.5 years, OYO has expanded its presence to 320 cities, nearly 10,000 OYO-branded hotels and 450,000 rooms, surpassing the scale of traditional and established hotel chain brands in the country, such as Home Inn, Hanting and others. The franchisee contract renewal rate of more than 97 per cent has been highly encouraging and reflective of the value that OYO creates for asset owners, while providing quality affordable accommodations to guests.
Commenting on the development, Sam Shih, COO, OYO China said, “OYO Jiudian (Hotels) operates like a Chinese company and delivers better living for middle-income people across the country. We have ensured that for the first time you can get a great living space in less than RMB 150 as well. Everyday, over 200,000 heads are on OYO Jiudian pillows in China due to the great experience at low cost. Also, we have enabled jobs for over 100,000 young people due to the occupancy rise and, as more people stay in our hotels, more economic opportunities are created. I am humbled to see that over 97% of franchisee partners have come back and renewed their contracts, a testament to the impact we have had on their business, both at occupancy and revenue levels. Today, we are less than 2% of the country’s accommodation market that stands at ~35 mn rooms. We have an incredible opportunity ahead of us and we are just getting started.”
OYO has revolutionized the fragmented and legacy-driven budget hospitality space in China by building a brand, optimising costs, hiring talent, as well as leveraging brand channels. With second-tier cities at its core, OYO Hotels’ chain extends deep into China’s tier-2 to tier-6 cities.
Asset owners, who have joined the OYO Jiudian (Hotels) group for 3 months or more, have, on average, seen a 2X increase in occupancy.
As of now, OYO Hotels gets 25 per cent of bookings from OTAs in China.