Summary
A tech platform for small hotels to implement a scalable, high-margin, revenue-sharing business model and address a massive global opportunity — sounds exciting. Oyo has only 1% of unbranded small hotels, homestays and other short-stay facilities under its own brand. Hence, the prospects for growth and profitability are high. But a scan of the fine print presents a few points to consider.
OYO IPO is easy: In the worst year for the hospitality industry, we got lean and fit. Now, with Yatra opening up, we are in a position to take advantage of all the streamlining we have made. abolition of minimum guarantees for hotel partners; withdrawing from highly loss-making China and US markets; workforce reduction to a quarter of its peak; And with the closure of self-operated hotels, Oyo’s business has become much simpler.
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