OYO Announces $100 Million Plan to Strengthen Its Southeast Asia Presence
OYO Hotels is on the expansion spree. After China, UK and UAE, the SoftBank-backed Indian startup has now announced the launch of its hotel chain in Indonesia. OYO Hotels is ready to offer the benefits of its hospitality experience to asset owners, property investors and travellers to Indonesia with a string of over 30 full-inventory - franchised and operated - exclusive hotels and over 1000 rooms in three cities in Indonesia - Jakarta, Surabaya, and Palembang.
The expansion comes just six months after the company raised $800 million in funding from Japan’s SoftBank Vision Fund.
Launched in May 2013, the hotel chain is currently present in over 350 cities with over 12,000 asset owners spread across six countries including India, China, Malaysia, Nepal, the UK, the UAE and now Indonesia.
Founded by Ritesh Agarwal, the company will be working towards transforming the country’s hospitality industry by leasing & franchising assets and renovating them into beautiful living spaces. It will also be introducing its tech-based solutions for ensuring a seamless experience for both guests and asset owners while generating lucrative job opportunities for locals in various fields including housekeeping, front office, F&B, general management, civil engineering and more.
For Agarwal, Indonesia is one of the top choices for both global and Indian travellers and market learnings and expertise OYO Hotels is ready to tap this opportunity.
“We’ve been at the forefront of the small and budget hotels revolution in India, China, Malaysia and Nepal, and have recently forayed into the UK and the UAE. Building the category grounds-up, we have employed technology and operational acumen to deliver delight to our customers and unique benefits to partners,” he added.
This expansion is in line with our quest to support the country’s hospitality ecosystem and creating infrastructure for asset owners to grow and run successful businesses, all of this while ensuring high standards of quality.
OYO’s $100 Million Plan
The company intends to invest over $100 million in this high growth market and plans to expand to the top 35 cities in Indonesia, including Yogyakarta, Bandung, Bali, over the next 15 months.
At the time of entry, OYO Hotels will offer guests the high quality and affordable experience - perfectly suited for the needs of millennial travellers, aspiring for hassle-free accommodations. These properties will be operated under models of machine, lease with full - inventory control similar to other markets like India and China. These hotels will provide affordable and trusted living options for Indian, Indonesian and International tourists, business travellers, and local city-dwellers.