Oyo entered the United States of America with more than 50 hotels in 35 cities. Its latest entry is in the famous city of Las Vegas. The Indian hotel giant Oyo comes to Las Vegas collaborating with the US real estate major Highgate. Both the companies have agreed to invest around $135 million for the property in the city. The existing Hooters Casino Hotel will be revamped that will allow them to serve around 657 rooms across 19 floor and a 35000 sq. ft. Casino.
Oyo has been like a revolution in the hospitality industry in India first and then the similar patterns have been followed in numerous other markets. After disrupting a number of different markets around the world, Oyo is looking forward to capturing the dynamic US market. The US market is one of the largest in the hospitality industry. Currently, Oyo serves 112 hotels in 60 US cities.
Oyo’s valuation currently stands at over $5 billion. However, it is planning to raise another $1 billion soon at a valuation of $10 billion. Its current investors include players such as Softbank, Sequoia Capital and even Airbnb. The rate of growth of Oyo is remarkable but it aims to become the largest hotel chain in the world by 2023. It has thus promised to invest around $300 million in the US market and also $200 million the Indian and South Asian market.
Amidst the growth story, there are few setbacks and controversies as well. The local hoteliers in India and a few other markets who are working with Oyo have raised issues regarding Oyo’s policies. In some cases, huge sums of money are pending from Oyo and in some other cases Oyo’s pricing and other strategies have been accused of being disrupting. This has tarnished the image of the brand in small pockets around the globe. However, it seems that these have not impacted the minds of Oyo’s consumers who have been constantly rising.
Although Oyo is rising just as if it is unstoppable, it should always keep its guards up and look for the flaws that have been raised by many people. Immediate actions need to be taken by the Indian Unicorn to eradicate the issues and have a long term vision for the global hospitality market instead of looking at short term profits and growth.