March 18: Hospitality brand OYO Rooms will invest Rs 1,400 crore in its Indian and South Asian businesses. The company looks forward to concentrating on building infrastructure, technology, internal operations and also employing people at all levels of the business.
According to reports, the hospitality company also announced the launch of its new brand Collection O. The new brand by OYO targets millennial and young travelers. As of now, Collection O has around 12 hotels branded under the same. The upcoming brand will be listed under mid-segment hotel chain brands. It is said that the company looks forward to holding around 650 hotels with around 20,000 rooms in 2019.
With 8,700 buildings and 173,000+ rooms, the company plans to expand the business to 260 cities in the Indian market. The majority of OYO’s sales, i.e. up to 93 percent are based on the word-of-mouth publicity.
An amount of Rs 1,400 crore was allotted by the company for technology investments, renovation, and managing investments for the year 2019. In order to ensure sustained economic growth, more funds will be pumped in as per the requirements.
The company has been able to cut down its losses too. In fiscal 2018-2019, narrowing the losses by 10.4 percent, OYO has shown improvement by 50 percent. According to the company, its business is spread across 500 cities in 10 countries, with over 515,000 rooms. The company stated that the sales in December helped the company enter the New Year at $1.8 billion market value.