OYO Announces $100 Million Plan to Strengthen Its Southeast Asia Presence

The company plans to invest $100 million into Indonesia and will look to launch in over 35 cities by 2019

learn more about Nidhi Singh

By Nidhi Singh

Facebook: OYO

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.

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.

Why Indonesia?

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.

Nidhi Singh

Former Correspondent, Entrepreneur Asia-Pacific

A self confessed Bollywood Lover, Travel junkie and Food Evangelist.I like travelling and I believe it is very important to take ones mind off the daily monotony .

Related Topics

News and Trends

Scam 2023: Inside The World Startup Convention Disaster

To many, the speaker line up for the World Startup Convention (WSC) which had been scheduled for March 24-26, 2023 at Greater Noida may have seemed too good to be true.

Business Plans

5 Things to Know and Do Before Writing Your Business Plan

If you need a business plan, there are certain things you need to know and do before you sit down to create it. In this article, you'll learn five things to complete before writing your plan to ensure you get the best results.

Growing a Business

Scaling Made Easy: How to Scale Your Business like a Fortune 500 Company

Once you have the night-vision skills of Fortune 500 restaurants, scaling becomes effortless. Here are 3 ways to scale, hidden in plain sight.

Money & Finance

7 Ways to Make Extra Income Even With a Full-Time Job

Want to make more money? Real estate investing, Amazon ecommerce and the sharing economy are waiting for you.

Starting a Business

90% of Online Businesses Fail in Just 4 Months. You Can Avoid the Same Fate By Using These Strategies.

It's not catastrophizing when we think about potential failure; it's in fact a chance for any business to precisely see any outcome and prepare in advance.