OYO hotels are trying to enter student housing, co-living and co-working segments that will help it expand its reach in the housing business in the country. These few parts of the housing business are very important as they are in very much demand in this populated country of India.
The Softbank companioned hospitality service chain plans to accommodate over 100,000 beds across the major cities of India by the end of the year of 2019. The firm currently operates around 13,000 beds in the selected cities of Delhi-NCR, Pune, and Bengaluru.
OYO is planning to target the students housing market
The CEO of OYO rooms, Rohit Kapoor told that they are looking to capture the majority of the co-living and student housing market in the country and they are living to find stable rental assets. Student housing is a very big business way for OYO ad there are over millions of students in the country of India who is looking for places to stay while they complete their education.
Student housing is a big topic in the housing accommodation market as India has a large population of students in the country. Students run the country in a way. With the growing population and condition of the current situation, there is going to be just a larger requirement for housing for students in the future. OYO targeting this area is not so bad after all because it is going to be a win-win situation. Students require very urgent accommodation.
Engineering, medical and some of the other major study courses can bring very good profit for OYO rooms. Accommodation near big colleges and other big areas where students can stay can be very important. Kota remains such a place because there are many students from many parts of the country that come there to take engineering entrance examination coaching. And these students require a place to stay. OYO can be of use here by accommodating these students with good places to stay and helping them find good paying guests and other accommodations. Student accommodation is a big market for OYO and jumping in it will benefit the company with great opportunities.
The rollout of student and co-living housing scheme will also see the OYO Life entering the metros and each of the segments having a maximum number of 250 beds that will be dependent on the demographics. The world accommodation markets stand at 160 million rooms and $3.6 trillion opportunities that are still growing at a very steady rate. They have captured only 1% of the larger pie and they are just scratching the surface.
That aside the company is planning to buy out the co-working innovator, Innov8. ET has recently reported that in January the firm is looking at an all-cash deal. This accusation that has been done will see OYO venture into the co-working space. The CEO has however refused to comment on the transaction.
A few months earlier this current year, it was announced that OYO will invest over Rs 1,400 crore or $200 million for the Indian and South Asian business, as it is a part of doubling their expansion plans across the country and business segments.
Globally the Gurgaon based firm is operating in over 18,000 franchised and leased hotel rooms and over 515,000 rooms. In the country of India, it is operating over 8,700 leased hotels and franchised hotels and over 173,000 rooms, with footprints in over 259 cities.
The concept of student housing is very non-existent in India. Although there are many cases of accommodation of students inside the campus facility is preferred but the accommodation of such falls short in the end.
OYO’s turnover and business through the year
According to the WpLov, OYO is targeting to accommodate a large number of beds by the end of the year.
OYO, which was founded by owner, Ritesh Agarwal, has raised over $1.5 billion over across the rounds and recently has closed $100 million from the ride-hailing foremost clutch in the latest tranche of its ongoing $1 billion funding round. This is a Gurgaon based Hospitality chain and has been expanding dramatically overseas, including in the country of China. The named season aviation executive Aditya Ghosh as its first CEO for India and South Asia in November.
OYO is one of the biggest brands in the market of room supplying. The company is expected to make several advances in the way towards its growth. While the CEO did not provide any specific statement towards where it is going to advance, there are many things that can be suspected to be happening soon. OYO life, which was launched approximately six months ago is expected to take over the $200 million budget.
OYO is rapidly expanding to success and because of the big business mind of the owner and the CEO, the company has been reaching new heights. The company is taking the right steps to good expansion and can reach further is it continues its growth.