India / China: Airbnb is reportedly looking into the possibility of entering into a deal with OYO with a potential investment of $100 million to $200 million in order to emerge in the hotel business in India and China.
The news comes a matter of weeks after Airbnb acquired US hotel booking startup HotelTonight for more than $400 million.
Earlier, OYO had said that Airbnb could be a potential partner as OYO manages two dimensions of the homestay market in which Airbnb is not currently involved; managing day-to-day operations & guest check in/check out fulfilment, and home infrastructure.
OYO chief growth officer Kavikrut told Financial Express Online: “There are three main components to the OYO home business model. Airbnb is only the first of these three — a successful platform that lets hosts lists their homes and guests discover and book them.”
Kavikrut added that OYO was growing and would soon own all three layers of the business.
OYO Homes presently operates more than 6,000 fully-managed residential accommodations in India and Dubai. The company launched itself in Dubai in January this year.
Kavikrut said: “In India, we are focused on top travel destinations including Goa, Shimla, Pondicherry, Coorg, Manali, Dehradun, Wayanad, Coorg, Udaipur and Jaipur among others. In UAE, we have 40 homes and plan to expand to 200 in the next six months.”
Earlier this month, OYO said that its hotel sales globally increased by over four times from $0.4 billion in 2017 to $1.8 billion in 2018.
CFO Abhishek Gupta said: “Globally, we have reached over 4,58,000 fully controlled leased and franchised keys (rooms) with a realised value run rate of $1.8 billion.”
Realised value run rate is in reference to the realised value net of cancellations, discounts and forward bookings announced on the basis of December of that year.
The company is aiming to become the world’s largest hotel chain due to the number of rooms it is adding and the realised value run rate, as well as its possible investment.