By the end of this year, Oyo wants to add 400 properties to the leisure sector

• ByStartupStory     |    October 20, 2022

According to those with knowledge of the situation, Oyo plans to add 400 leisure hotels by the end of this calendar year in response to the increased demand for leisure travel. So far this year, the firm has added about 600 units in vacation areas. According to the individuals cited above, it will concentrate on 19 leisure markets like Goa, Shimla, Amritsar, Puri, Tirupati, Udaipur, Mysore, and Gangtok. 4ByOyo, 5ByOyo, Oyo Townhouse, Townhouse OAK, Capital O, and Collection O are among the leisure brands offered by OYO. 

According to people with knowledge of the situation, Oyo will take into account elements like proximity to important local tourist hubs when adding these hotels and houses to its repertoire. It is aimed at specific traveller types, including family and friend groups, pilgrimage groups, and groups with particular dietary needs that bring their own cooking equipment. 

After a two-year hiatus, a sizable amount of unmet demand has been driving up hotel and flight costs in India’s leisure markets. Government statistics show that since January of this year, Jammu and Kashmir have welcomed a record 1.62 crore visitors. All segments of the hospitality industry have benefited from the increase in demand. 

According to certain media forecasts, airfares may increase this Diwali by 30–40% over the same period last year. Last month, it was reported that Oyo is considering expanding its market share in the Southern regions and has plans to add over 600 additional hotels and residences in South India by the end of the year. 

In states like Karnataka, Kerala, Andhra Pradesh, Tamil Nadu, Telangana, and the union territory of Puducherry, Oyo manages about 1350 properties. According to an amendment submitted to the Securities and Exchange Board of India, the company reported losses from continuing operations of Rs 2,140 crore for 2021–22, a 48% decrease from Rs 4,103 crore the previous year.

Despite its losses of Rs 414 crore, the company claimed the first quarter of 2022–23 was its first EBITDA–positive quarter. For the April–June period, it reported an adjusted EBITDA of Rs 7 crore. For the quarter, it generated Rs 1,459.3 crore in operating revenue. According to people with knowledge of the situation, Oyo’s decision to file an addendum shows that the company still intends to proceed with its IPO ambitions.

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