OYO has been one of the fastest hospitality growing startups in the world. The reason for this is that the company has a lot of cash at its exposal to burn. It recently launched co-working spaces which might be a hit amongst the young entrepreneurs. There is one facility which is already planned and will be up and running within no time. That being said the company has been doing a lot of the work which is taking to another level with every step in the way.
Softbank, on the other hand, which has backed OYO on multiple occasions has been doing the job of a mentor. That said the company is now entering a partnership with OYO to launch a Joint Venture firm. The joint venture is to launch OYO Hotels in Japan with OYO holding 50% stake and Softbank and its Vision Fund holding 25% stake each in the business. That said, with this OYO will enter another company with the help of the biggest company in Japan.
A person familiar with the matters told ET about the same. The reason for this is that the Indian company had to enter Japan at some stage and the fact that they are entering the co-living spaces more than hoteling inspires Softbank more. “This is obviously triggered by Softbank and a foray into Japan had to happen at some stage. Although the announcement is to do with the commencement of hotel operations in Japan, they’re betting on the co-living spaces more than the hotel operations in Japan, to begin with,” the source said.
The expertise of both the companies combined will just help exploit the market. The Japanese market is there to be exploited and with Softbank having the understanding of the Japanese market and OYO being an expert in the hoteling business, Ken Miyauchi, the CEO of Softbank believes that the company might just hit the ball out of the park with this deal. That being said, it will be interesting to see how the deals take place in the future.
Miyauchi told the media about this matter. He said, “Combining OYO’s most advanced business model with SoftBank Corp’s knowledge of the Japanese market, we will provide brand-new hotel experience to travelers in Japan. Moreover, OYO Hotels Japan offers various values for owners such as dynamic pricing and reservation systems, contributing to the elimination of labor shortages and flexible pricing.”
CEO of OYO also mirrored the views and talked boldly about his plans in the future during the launch of this joint venture. He said, “Today, with the launch of OYO Hotels Japan, we hope to leverage our hospitality experience to host millions of travelers. We are delighted to have SoftBank Corp’s support as always, as we gear up to enter the hospitality market in Japan.”