Airbnb really need to get alert. Oyo is chasing behind, tightly. The Indian-based hospitality startup has set its mind on the US expansion. At the home of its biggest competitor, Oyo has prepared $300 million.
The hundreds of million dollar is for building technology. As well as for design and operating teams and renovating properties. Now, the company is adding one new hotel in its list everyday. And it plans on expanding five times the rate by the end of 2019. Currently, the startup has 50 hotels in 35 cities across US on its list.
Previously, the company has set an office in Dallas along with testing properties in Austin and Dallas last February. Then it rapidly opened recruitment on major cities across the US. Starting from Atlanta, Myrtle Beach, South Carolina, Colombus, Ohio, Miami and others.
“So far we’ve been very focused on, build a good product and price it very effectively for the consumer. We want to make sure that we do it right rather than just do it fast. If that means three a day and not five a day, life goes on.” -Ritesh Agarwal, Chief Executive Officer of Oyo.
US expansion is not the only one for Oyo
Before US, Oyo has also secured a partnership with Ctrip in China. The partnership grants the Indian company a better access to the giant Chinese market.
Softbank Vision Fund, along with Sequoia Capital and others invested $1 billion on the startup last September. The investment fuels Oyo’s rapid growth and expansion.
In Asia itself, it plans on committing $200 million for expansion in the region. It aims to have 25,000 hotels on its list from Asia.
At this rate, it’s not impossible for Oyo to reach its goal at the right time. Agarwal stated that the company expects to be the world’s biggest hotel chain by 2023. Now it has 23,000 hotels and 46,000 vacation homes in 74 countries across the world.
