OYO crosses 5 lakh room inventory in China, to invest $100M in two years
Hospitality firm OYO Hotels and Homes Tuesday said it has crossed an inventory of five lakh rooms in China, and plans to invest $100 million in that country in next two years as part of ongoing expansion.
OYO Hotels and Homes is investing in China for quality as well as system improvements and customer service.
The news comes at a time when OYO China is reportedly laying off staff across business development and operations functions, according to Chinese media firm 36kr.
OYO's Ritesh Agarwal
Within a span of around a year-and-a-half of operations in China, OYO has expanded its presence to over 337 cities and 5 lakh rooms, the company said in a statement.
"The company has allocated approximately $100 million out of the $600 million earlier committed to being invested in China, towards quality and system improvements and customer service in the next two years," said OYO China COO Sam Shih.
Besides, OYO also claimed that it has now become the largest single hotel brand in China.
"As we move into the next phase of growth at OYO, our focus will continue to be on hiring and retaining top talent while at the same time optimising operational efficiency across all departments," Shih added.
OYO China has also announced appointment of Zhu Lei as its Chief Revenue Officer, who would be responsible for driving occupancy across OYO hotels in the country.
Besides, he would also oversee offline sales and online travel agent (OTA) channel portfolios.
According to the company, with second-tier cities at its core, OYO Hotels' chain extends deep into China's Tier-II to Tier-VI cities and has created both direct and indirect employment opportunities across the country.
This month, OYO also said that it has plans to invest $300 million (approximately Rs 2,085 crore) over the next few years in the US for growth, talent acquisition, competency building, and infrastructure development.
In a statement, the company said that it manages over 50 hotels in more than 35 cities in the US including Dallas, Houston, Augusta, Atlanta, and Miami, and is looking to soon expand its presence to cities like New York, Los Angeles, and San Francisco