I N D I A ' S LA R G E S T B R A N D E D N E T W O R K O F H O T E L S

OYO`s INTERNATIONAL EXPANSION

ON YOUR OWN ROOMS – A MANCHISE THRILL!

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Agenda

Industry Overview

What is OYO Rooms

Competition

International expansion

The road ahead

Travelling Accommodation

Tourism Tourism &

Hospitality

Food and
Beverages

3
 Industry Trends

• Tourism has now become a significant source of foreign exchange and major
employment generator in India. The booming tourism industry has had a
cascading effect on the hospitality sector with an increase in the occupancy
ratios and average room rates
• The tourism and hospitality sector is among the top 10 sectors in India to
attract the highest Foreign Direct Investment (FDI). The hotel and tourism
sector attracted around US$ 10.6 billion of FDI between April 2000 and
September 2017
• There is an emergence of budget hotels in India to cater to much of the
population who seek affordable stay as hotel industry is growing too.
• Around 40 international brands are said to enter the country in the next five
years (as per Cygnus estimates).
 Industry Trends

• It is expected that the hotels industry is expected to fall short of meeting the
long term demands of an economy growing at about 7% p.a.
• The growth rate in room demand (about 6.8%) has been consistently
outpacing the supply (about 3%) growth in India for the past few years.
• India, after China, is considered as one of the most lucrative hotel markets in
the world.
• The long-term outlook for the Indian hospitality business continues to be
positive, both for the business and leisure segments. The sector has potential
for growth on the back of increases in disposable incomes, increase in foreign
tourist arrivals, momentum from government-led initiatives, and the
burgeoning middle-class population.
The OYOStory

RITESH AGARWAL:
Ritesh is the Founder and CEO at OYO Rooms. He was
selected for the 20 under 20 Thiel Fellowship which
makes him the only Asian to be selected. He started
working early at the age of 13and by 18 he was building
OYO Rooms.
Our Mission

“Building TheWorld’s Largest

Technology Driven Hotel
Network”
OurVision

“ChangeTheWay People
Stay Away FromHome”
 COMPANY OVERVIEW

• FOUNDER: Ritesh Aggarwal

• FIRST BUSINESS : ORAVEL in 2012 ---------> OYO in 2013

• PAIN POINT WHICH HE TRIED TO SOLVE : He always felt that the biggest
problem people in India while travelling face is to find affordable hotels to stay in
and are not able to get very basic facilities from the hotels.

• 2018 STATISTICS : Present in more than 200 cities

With 6500 rooms across nation.

• 2019 STATISTICS: Present in over 259 cities.

have around 8700 hotels and more than 173,000 rooms
 Barriers to entry
Economic risks, high capital costs, competition in the
industry, poor infrastructure facilities and scarcity of land

Bargaining power of suppliers

Limited due to higher competition, especially in
Competition metros.

Bargaining power of customers

Higher in metros due to increasing room supply

Competition
Intense in metros, slowly picking up in tier-2 and tier-3 cities. Competition has picked up due
to the entry of foreign hotel chains. Also, there is an increasing competition from the
startups/online industry due to the increasing penetration of the internet.
 COMPETITORS

Airbnb
MakeMyTrip

Goibibo

Yatra
International Expansion
 THE JOURNEY

• MALAYSIA - Oyo board to hoist its flag in Malaysia for several reasons like of
being one of the countries where the growth of the tourism us the fastest
pertaining to $ 19 billion and 25.8 million arrivals as per the year 2018.

• NEPAL - It ventured its first hotel in Nepal – Oyo Rooms 001 – Kathmandu,
located in the centre of the city with the idea of “Kuala Lumpur to Kathmandu”

• CHINA - Operating with the name of OYO – Jiudian, in China the company
had become the largest hotel chain with 320 cities and 450,000 rooms till late
May 2019 to over 337 cities and 500,000 rooms.

• SRI LANKA - After its presence in 7 countries including UAE, UK, Malaysia,
China and Nepal, In the late 2018, it launched its operations in Colombo, with
the establishment of 10 properties as a sequence of events when Aditya
Ghosh (Former Indigo President) was appointed its CEO
• Indonesia, UK, UAE - The company entered Indonesia in October 2018 with an
inventory of 30 – full franchised and operated hotels comprising of 1000 rooms
in 3 cities of Indonesia – Jakarta, Palembang and Surabaya.

UK for OYO was the first destination out of the Asian region. It aimed to shiver up
the Britain’s hospitality industry by the model of franchising using strategic
planning of offering 300 independent hotels before the year 2020.

In the UAE market, it launched its Capital- O segment for offering its premium
services to business travellers.

• SINGAPORE - the company faced much difficulty and challenges from the
Accor Hotels which marked the deal of 15 budget hotels in Singapore branded
as “Fragrance Hotels”.
 2019`s
BREAKTHROUGH

JAPAN

SAUDI
ARABIA

PHILIPPINES
THE ROAD AHEAD
 THANK YOU

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