OYO, which closed its standalone hotels just before the onset of the Covid-19 pandemic, is now actively partnering with asset developers to identify housing for those hotels.
OYO said it has already partnered with 30 genuine real estate agents and operates more than 35 hotels in cities such as Delhi, Bengaluru, Hyderabad, Kolkata, Goa, Mumbai and Chennai.
Earlier this year, founder and CEO Ritesh Agarwal claimed that the IPO-linked hotel unicorn will report a profit of INR 16 Cr in the second quarter of FY24.
Unicorn hotel OYO, linked to its initial public offering, has revived its self-managed hotels more than two years after the business closed.
As part of its new “Prime Partner Program,” OYO said it will offer its “best-managed” hotel operators the ability to operate more hotels and generate more profit without taking the risk of renting or the overhead of establishing a new hotel. .
OYO said it is actively partnering with genuine real estate developers to identify housing for those hotels.
During the pilot phase of the program, the company has already partnered with 30 real estate agents and operates in more than 35 hotels in cities such as Delhi, Bengaluru, Hyderabad, Kolkata, Goa, Mumbai and Chennai.
Under the new program, those operators will gain advantages from compromised appointment managers and access to OYO’s network of more than 15,000 corporate accounts and more than 10,000 agents, the company said in a statement.
These independent hotels will be classified as “Managed through OYO” on the app and website. In addition, the global hotel giant said it will closely monitor hotel and guest reviews.
Under this program, the hotel can transfer its assets to a giant organization on the basis of a constant rental agreement, profit sharing or control.
“The program recognizes the changing hospitality landscape, with hoteliers looking to grow and visitors looking for well-managed accommodations. By providing hoteliers and homeowners with the opportunity to participate in this program, OYO aims to create a win-win scenario that benefits homeowners, professional hoteliers, and hoteliers,” stated Anuj Tejpal, OYO’s Chief Commercial Officer, in the statement.
Most Prime Partner Program listings will be incorporated into the company’s premium offerings, such as Townhouse, Townhouse Oak, and Collection O.
Fittingly, Inc42 reported earlier this year that OYO plans to enter India’s developing high-end hotel market and load another 1,800 high-end homes on its platform in 2023.
Just before the Covid-19 pandemic took shape in India, OYO put an end to the self-managed hotel business model, likely due to SoftBank’s strain on the profitability front.
Soon after, the pandemic devastated the entire industry globally and OYO also had to reduce its operations in some high-growth geographies such as the United Kingdom, Europe, Malaysia, Indonesia and the United States.
However, OYO is back in those markets, focusing on high-end hotels and vacation homes.
OYO is also on track to report its first profitable quarter in Q2FY24. In an internal email sent to the company’s governance team, OYO Founder and CEO Ritesh Agarwal recently stated that the startup would mark its “first profitable quarter” with a projected profit of INR 16 in the second quarter.
The company reported a relief loss of 38% of INR 1286 in FY23 with an operating profit of INR 5463.
Earlier this year, OYO reduced the duration of its IPO to $400-600 million from $1. 2 billion previously and filed its HRD with the Securities and Exchange Board of India’s (SEBI) confidential pre-filing.
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