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OYO checks-in a $100 Mn investment in china; Becomes largest hotel chain

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Ritesh Agarwal, founder, OYO

With investment worth $100 million and expansion at a breakneck pace, OYO gains the spot of China’s largest hotel chain in terms of room count. It has expanded to tier-2 to tier-6 cities of China and plans to tie up with OTAs to increase its reach.

Beijing: With an enormous leap in its holdings, OYO has become China’s largest hotel chain in terms of room count. A little less a month ago, it held the title of the second largest in these terms. The hospitality chain went from 320 cities and 450,000 rooms at the end of May’19 to over 337 cities and 500,000 rooms before June’19 has even ended.

It has been a little over 18 months since the hospitality firm set foot in China and it has been expanding ever since. OYO Jiudian – the firm’s Chinese entity – committed $600 million to its business in the country. Under that, the hospitality giant announced the investment of $100 million dollars towards quality and system improvements and hiring. Under this project, they have hired more than 10,000 people and created jobs for more than 200,000 Chinese hospitality enthusiasts.

Hospitality giant’s China acquisitions; Picture: Pixr8

For the year 2019, we have recognized key priorities, including a deep and wide expansion of the firm’s chain while ensuring a consistent product and service delivery, and high-quality customer experience, said Shella Ng, general counsel, OYO China
OYO’s further plans

As proof of its penetration in the country, OYO has shown its presence in China’s tier-2 to tier-6 cities. The firm also has plans to tie up with various online travel agencies to reach a wider customer base. Recently, the firm partnered with China’s leading OTA, Ctrip. This generated more demand for both firms’ services by offering seamless access to services to customers of both brands.

Read More: OYO looks to host guests in the States; boost its presence by $300M

Additionally, the firm has announced the appointment of Zhu Lei as the company’s Chief Revenue Officer. He would be responsible for driving occupancy across the country.


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