Oyo, an India-based hotel aggregator and operator, plans to expand its U.S. footprint by adding over 250 hotels in 2024, representing a 150% increase from the previous year. With a current count of 320 properties, the company aims to have one in ten hotels in the U.S. associated with the Oyo brand. This strategic move includes targeting markets like Miami, New York City, and Las Vegas, among others. Oyo’s expansion does not include its luxury brand offering, Sunday, in the U.S at this time.
Since its U.S. debut in 2019, Oyo has been steadily expanding its presence in key locations such as Florida, New Jersey, and New York. The company plans to debut properties in San Jose, Boston, Seattle, and San Diego this year. Oyo has evolved into a digital-first enterprise, focusing on generating online revenue streams for its hotel owners. This shift has been a key differentiator for the company, fueling its growth in markets that have seen above-average growth like Florida, Nevada, and California.
Oyo’s CEO, Ritesh Agarwal, emphasized the company’s operational expertise in rapidly scaling operations while providing quality experiences for guests and driving financial results for partners. Oyo has seen significant growth in markets like Pennsylvania and New Mexico, with per room revenue improving by over 25% in 2023. The company has outpaced the budget hotel industry’s per room revenue growth in the U.S, with a 17% increase in 2023 compared to a 9% decline in the budget hotel segment.
In addition to its U.S. expansion, Oyo operates in over 35 countries globally and owns a vacation home business in Europe. Despite its international operations, India remains the biggest market for Oyo, where it manages or partners with over 10,000 hotels. The company may consider a potential public offering in the Indian markets, with CEO Agarwal stating that they do not currently need to raise more money from public or private markets. Oyo’s focus on improving customer and owner experiences, as seen through partnerships like the one with payment processing platform Stripe, highlights the company’s commitment to growth and innovation.
Overall, Oyo’s growth strategy in the U.S. primarily focuses on its budget hotel segment, while the company may look to go upscale in India. With plans to significantly increase its hotel count in the U.S. and expand into new markets, Oyo is positioning itself as a major player in the hospitality industry. Through its digital-first approach and commitment to improving customer and owner experiences, Oyo continues to drive growth and success in both domestic and international markets. The company’s confidence in its expansion endeavors, particularly in markets showing above-average growth, underscores its commitment to staying ahead of the curve and remaining a leader in the industry.
