Oyo Hotels enters Indonesia with US$100m in investment war chest

Oyo Hotels is planning to invest US$100 million in Indonesia and expand its presence to over 35 cities by 2019.

The India-based budget chain will start operations with 30 properties operated under leasing or franchise agreements in Jakarta, Surabaya and Palembang.

It will also introduce its tech-based solutions for both guests and asset owners while generating job opportunities for locals in various fields including housekeeping, front office, F&B, general management, civil engineering and more.

Commenting on the developments, Ritesh Agarwal, founder and CEO, Oyo, said: “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. Indonesia is one of the top choices for both global and Indian travellers, and with our market learnings and expertise we are ready to tap this opportunity.

“We intend to invest over US$100 million in this high growth market and plan to expand to the top 35 cities in Indonesia, including Yogyakarta, Bandung and Bali, over the next 15 months.”

These properties will be operated under models of manachise, lease with full inventory control, similar to other markets like India and China.

Rishabh Gupta, country head, Oyo Hotels, Indonesia, added: “Indonesia is an attractive market with sizeable Internet and mobile presence, which complements our approach. We’ve received an overwhelming response to Oyo Hotels offerings in the country since our soft launch and look forward to hosting more guests in the coming years.”

Ibu Lidya, asset owner of Oyo Sarkawi Residence, Indonesia, manchised her asset with Oyo Hotels four months back when it was “struggling with 28 per cent occupancy”, and has since seen the number rise to 92 per cent.

Read more...