Hospitality giant, OYO, is back with its self-operated hotels and is aiming to add 200 new properties to its portfolio.
What Happened: OYO has reintroduced its self-operated hotels, labelled as ‘Managed by OYO’, on its app and website. In a bid to find suitable properties for these hotels, the company is looking to team up with real estate developers.
With an aim to ensure operational efficiency and high levels of customer satisfaction, OYO is planning to acquire long-term management contracts on a revenue-share basis with 200 premium hotels in major Indian cities. In the wake of the first wave of COVID-19 in 2020, the company had put its self-operated hotel model on hold and is now reviving it after a break of three years.
As part of the initial phase of the programme, the company has already teamed up with 30 real estate developers and has kickstarted operations in over 35 hotels. These properties are located in key cities and popular tourist destinations such as Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, Goa, Chennai, and others.
Anuj Tejpal, Chief Merchant Officer, OYO, expressed optimism about the response from leading hoteliers and suggested a potential increase in the current target of 200 hotels under the program.
Why It Matters: The revival of OYO’s self-operated hotel model indicates a strategic shift in the company’s operations in the post-pandemic world. The move could be seen as a part of OYO’s efforts to recover from the losses incurred during the pandemic. By securing long-term management contracts, the company is not only aiming to expand its footprint but also to improve its operational efficiency and customer satisfaction.
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