Here's how OYO is enabling micro-entrepreneurship and creating crorepatis—many of them are from Gujarat
OYO Hotels & Homes, the world’s second-largest and fastest-growing chain of hotels, homes, managed living, and workspaces, is enabling micro-entrepreneurship opportunities for thousands of real estate owners and helping them build a successful business. The company’s innovative business model turns around assets that were either lying unused or operating at standards that are not at par with the industry, into spaces that generate high yields, hence, turning many of these asset owners into crorepatis.
Some of these asset owners who have seen tremendous success with their properties after joining hands with OYO belong to Gujarat. As Deepak Shah, an asset owner from Ahmedabad, says, “It has been three years since I have been managing this hotel with family along with OYO’s support. The biggest challenge for me earlier was to approach clients and market my hotel. With OYO and its support, marketing my property and getting clients to take notice was no longer a worry. Our property is at a convenient location that is in close proximity to different corporate offices making it a preferred place to stay. We have an in-house multi-cuisine restaurant and also have the facility of outdoor seating in the terrace area which can be booked for different occasions. Owing to great marketing, quality accommodation and customer service that we have been able to provide with OYO’s help has resulted in a 90% occupancy on average. It has been a very fruitful association with OYO and we aim to continue with this in the years to come.”
OYO is continuously working with 500+ strong asset owner community in Gujarat to build successful and sustainable businesses. In line with this, OYO plans to expand and hire 2000+ employees across multiple functions, including Business Development, Operations, Service, Sales and Enterprise Partnerships, in the next one year in Gujarat to empower asset owners and enable them to ensure a great hospitality experience for guests, hence, increasing yields. Further to this, OYO also announced its partnership with Mountania Developers, to open the doors to its first upmarket business hotel in Ahmedabad, Gujarat.
How can you be benefited after becoming an asset owner with OYO?
Twofold value proposition
OYO offers asset owners a two-fold value proposition. First, OYO provides partners with the necessary capital to bring a building up to OYO's standards. Moreover, it also leverages available data to predict RevPAR, internal rate of return and ROI. With these details, OYO can indicate yield guarantee to the underlying asset owner.
OYO invests in the assets alongside asset owners to offer end-to-end solutions and support. Right from offering free design consulting to upgrading and transforming hotel infrastructure, to easing access to finance, transparent payment protocols, multiple touch-points, marketing excellence, tech innovation and regulatory compliance assistance ----OYO’s focus continues to be on generating high yields for asset owners along with offering excellent customer service. OYO can transform and renovate assets in a record time of 3-14 days and on-board them at an even quicker pace — a stark contrast to the industry standard of up to 90 days.
Increase in Occupancy
An asset owner, Rick Patel, based in the US elaborates on the jump in occupancy. He says, "Before OYO, our occupancy was about 20-25% and now, we are running at about 80% occupancy. We have never reached this occupancy rate before in the last 5 years. I would definitely recommend OYO to my friends and family interested in getting into the hospitality industry. My experience with OYO has been amazing. The team is great to work with, very energetic and supportive. We are just looking forward to the next level."
OYO brings to the table a successful model of combining design, hospitality, and technological expertise, financial acumen and operational capabilities to real estate owners around the world, giving them the ability to get a higher return on investments, access easy financing opportunities, transform their hotels, and offer good quality customer service, thereby significantly increasing occupancy and profitability – in every OYO building. There are over 35,000 of these buildings worldwide. OYO has been able to generate a high yield for asset owners by maintaining 70-80% occupancy, which is often an issue with an asset-light model. On an average, over 75% of hotel owners associated with OYO have seen an increase of 20-30% in occupancy, a 2.5 x jump in RevPar and a significant jump in profit, for every asset operating as an OYO-branded property.
Another asset owner, Narendra Saini from Ahmedabad, says, “ It has been three months since my partner and I joined hands with OYO and are already witnessing great results in terms of occupancy and yields. Prior to joining hands with OYO, our main challenge was promoting our hotel through different channels. There was a time when in the offseason we used to get only 25-30% occupancy which now, post associating with OYO, has jumped to more than 80%. With OYO, it has been a true collaboration of sorts where we both are mutually benefitting. Our hotel witnesses bookings from corporate clients. We have an in house restaurant and are soon going to open a multi-cuisine rooftop restaurant by next month.”
Best Pricing Mechanism in the Industry
OYO has introduced dynamic pricing in the hospitality industry to create a level-playing ground even for an independent or small hotelier. OYO’s pricing, inventory allocation, and revenue management are driven by a machine learning-based algorithm for prediction and dynamic pricing. The algorithm makes 60 million micro-optimizations, every day, to arrive at the optimal price point that ensures an affordable stay for guests while driving higher yields and occupancy for the asset owner.
Above & Beyond
To further support the business goals of asset owners, OYO launched OYO Partner Engagement Network (OPEN) in India - an industry-first series of year-long initiatives. This was followed up with another industry-first initiative called ‘Cash in Bank’ facility to offer asset owners across India quick, hassle-free and collateral-free business advances to upgrade or renovate their buildings, with the never seen before ease, turnaround time, and convenience. This will further help asset owners improve the guest experience along with direct and repeat rate that’s already approximately 90%. OYO also introduced Partner Privilege Program in India to boost asset owner success and growth on the one hand and create a mechanism for continual engagement and recognition on the other. The Partner Privilege Program provides exclusive benefits and opportunities to OYO India’s top-performing hotel owners for their personal and professional advancement.
Amol Dhir, an asset owner from Agra and a member of OYO India Partner Advisory Council, says, “I strongly believe that getting affiliated to a brand like OYO can help the small, unbranded hotels in tapping the guests within the brand ecosystem. OYO’s sales team is fabulously supporting my hotel. They are running the show from behind the curtain, where a number of sales representatives, are pitching my hotel, even beyond the country’s boundaries to intended travellers.”
On his partnership and journey with OYO, Amol says, “ When I joined this hotel 12 years back I had a big vision for it, perhaps way too big than what my grandfather, my father and my family had for this hotel. I wanted a support system, a partner who could assist me in this. One day people from OYO walked in and they pitched me the idea of getting my hotel onboarded. I felt that they were just the right people who I could entrust my idea and push my vision further and we could grow along. The biggest change I found when OYO came along was how tech-savvy they were. Now, sitting at home I get to check the occupancy reports, employee management, booking and revenue reports. As an independent hotelier, I could not have achieved this or would have taken a little longer to get there. Technology with OYO became more accessible, affordable. Our life as a businessman became easier through this technology. For me, OYO has always been a partner and it is giving us various opportunities to get featured and grow along.”
If you are inspired by these success stories, you can know more about how to become an asset owner with OYO here: https://partner.oyorooms.com/in
Disclaimer: This article is a part of a commercial partnership Oyo and Business Insider India.
- Best yoga mats
- IndiGo to raise ₹4,000 crore through stake sale
- Supreme Court adjourns AGR case hearing to August 14
- ICICI Bank sets floor price for QIP at ₹351.36 per share — to decide on allotment on August 14
- McKinsey, Facebook, Amazon, Nokia — and some other companies looking for a product manager right now