Launched in 2013, OYO has been making waves. In just six years it has proliferated so quickly throughout the world, that existing hotel owners are just beginning to measure the impact has had not only on their businesses, but in the regions in which they operate. To date, OYO has over 35,000 hotels and 125,000 vacation homes, all in all representing 1.2 million rooms.
The company operates in over 800 cities and 80 countries. It has built and mantains several other brands including Silverkey, Collection O, Townhouse, OYO Home, Capital O, and Workspaces.
Overtime it has moved from an asset-light model in which it was aggregating hotel rooms by partnering with existing hotels to an asset-heavy model where it self-manages a number of hotels. The company reports it has seen a 3.8x year over year growth in revenues.
However all the growth has not come without conflict. Asset owners are alleging that OYO’s founder and other company representatives have engaged in predatory behaviour. Claims include that the company is not appropriately providing the returns and minimum guarantees that were originally promised. Moreover, OYO has been levying hidden and arbitrary charges.
In a statement, OYO contends, “We believe that the allegations are misguided and misplaced, and depict cartelization by small groups of people (not necessarily by franchisees and lessors associated with OYO Hotels) with vested interests, which is not in the best interest of the consumers.”
Despite the conflicts, the hotel brand and operation marches on pursuing even more expansion in both existing and new territories.
