OYO Doubles Down on US Expansion, on Track to Add 250 New Hotels in 2024
–News Direct–
Global travel technology company, OYOs US operations today announced plans to significantly expand its footprint in the United States. The company aims to add more than 250 hotels in the US in 2024. Last year the company added ~100 hotels in the US, taking the total count to over 320 hotels. This expansion will focus on some new as well as existing markets including Miami, New York City, San Francisco, San Jose, Boston, New Jersey, Las Vegas, Los Angeles, Manchester, Orlando, and San Diego. OYO was launched in the U.S. in 2019 and since then, has established a presence in over 35 states.
We are seeing tremendous interest from hotel owners to partner with OYO as we have demonstrated our ability to drive significant revenue uplift for our hotel partners. Our operational expertise allows us to rapidly scale and deliver an exceptional experience for guests across the country, while also driving strong financial results for our hotel partners, said Gautam Swaroop CEO OYO International.
Nikhil Heda, Head of Business Development OYO US added, We have seen strong growth potential in major markets in the US such as Florida, Nevada and California to site a few. With the company wide focus on sustainable growth, coupled with introduction of new tech-integrated business solutions to support the ever-evolving needs of our valued patrons, OYO is well poised to expand it footprint across the US in the months to come. As a matter of fact, we have been consistently adding more than a 1000 SRNs (Sellable Rooms Nights) every month. The eventual objective is to ensure that every 1 in 10 hotels in the US can proudly associate itself with the OYO brand.
The company recently reported that it has outpaced the budget hotel industrys per room revenue (RevPar) growth in 2023. While OYO's per room revenue witnessed a ~17% growth in 2023, the budget hotel segment in the USs per room revenue saw a 9% decline y-o-y in 2023, according to the STR report. Occupancy rates across OYO hotels in the US surged by ~9% y-o-y in 2023, whereas Average Room Rate (ARR) recorded 7% growth in 2023 as compared to 2022.
OYO recently announced that it has partnered with Stripe to ease the payment experience for its customers and hotel owners in the US. The integration will provide hotel owners with a flexible and seamless solution for in-person payments with Stripe Terminal at their hotels. OYO hotels in the US will also be enabled with real-time payouts through Instant Payouts with Stripe, which will improve their cash flow.
OYO also announced the launch of a virtual front desk solution for its partner hotels in the US. The self-check-in technology is integrated with smart lock systems, allowing guests to enjoy keyless entry and exit without the need for physical key cards. Round-the-clock virtual front desk powered by ChatGPT reduces front desk operations expenses by ~60%, saving an average OYO hotel ~$30,000 annually. The virtual front desk supports 80+ languages and promptly assists guests in their preferred language, addressing queries and concerns in real-time. Additionally, the system automates payment collection, streamlining the entire process for a hassle-free experience.
OYO has presence in over 35 countries globally. It owns a vacations home business in Europe called OVH (OYO Vacation Homes) which operates legacy brands such as DanCenter and Belvilla.
About OYO: OYO is a global platform that aims to empower entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 168,711 hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia, as of September 30, 2022. For more information, visit here
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COMTEX_451718467/2655/2024-05-01T09:58:34
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