JAKARTA -- Indian budget hotel chain OYO Hotels and Homes said it is planning to invest $100 million in Indonesia, or half of the total amount earmarked for Southeast Asia, to strengthen its presence there within the next two years.
Indonesia is key to OYO’s growth in Southeast Asia and globally, said founder and group CEO Ritesh Agarwal in a statement.
In less than a year of operating in the country, OYO has partnered with over 1,000 hotels to offer 27,000 rooms in 100 cities, beating its own initial target of reaching that number by the end of this year. More than 1,200 hotel owners have also joined OYO's network.
On Wednesday, OYO launched its Partner Engagement Network, an initiative to help its partners in Indonesia reach their business goals. The program consists of four core commitments which include transparent payment protocols, access to financing options for partners through banks and other financial institutions, marketing support, as well as technology and innovation support.
With its young population and growing economy, Southeast Asia is a hot market for budget travel and accommodation. OYO's plans in the region is a headache for its smaller peers like ZEN Rooms and Reddoorz.
OYO has a deep war chest, having raised $1.7 billion from SoftBank Group, Sequoia Capital, Lightspeed Venture Partners, Airbnb, Grab and Didi Chuxing, according to Crunchbase. By contrast, ZEN Rooms has raised a total of only $23 million and RedDoorz $69.4 million.
OYO took its first step in Southeast Asia via Malaysia in January 2016. In July this year, the chain launched in Vietnam where it is planning to invest $50 million. OYO claims to already have over 90 hotel partners in six major cities in Vietnam. It aims to become the largest hotel chain there by the end of 2020 with presence in 10 cities offering 20,000 rooms.
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