Oyo sees exponential growth in Indonesia

OYO, South Asia’s largest, one of China’s top five and the world’s fastest growing chain of hotels and homes, is seeing exponential growth in Indonesia in less than three months of its operations in the country. Launched in October 2018 with a string of over 30 full-inventory - franchised and operated - exclusive hotels and over 1000 rooms in three cities in Indonesia - Jakarta, Surabaya and Palembang, today OYO Hotels is already operating 150 hotels across 16 cities, and has seen a 5x jump in growth. OYO Hotels is charting a strong growth trajectory for itself in the country by adding 70 hotels every month to its chain and is looking at ending 2019 with its presence in 100 cities across Indonesia. The company has been rapidly expanding through the Indonesian market at a pace that’s outstripping previous benchmarks. Backed by strong local talent and execution, the company continues to prove its strong commitment towards adding value to Indonesia’s hospitality industry.

Ritesh Agarwal, Founder & Group CEO, OYO Hotels and Homes said, “We believe that our secret to success in Indonesia is the way we have built our business in the country. It was never about expanding into this new country with a distinct multi-national identity or way of working. We entered Indonesia with the mindset of an Indonesian company that saw an opportunity to emulate OYO’s successful business model in India to create something unique and relevant for Indonesia, and the results are visible. Each and every aspect of our operations in Indonesia is highly localised. This localisation had helped us in customising our offering from the point of view of a traveller in the country and what was lacking from his/her experience earlier when OYO was not around. Through this approach, we have been able to create a unique and authentic local company led by best local talent in the country and backed with the knowledge and know-how of the parent brand, that promises good quality affordable accommodations in more and more cities in Indonesia. It is still Day 0 for us, we are definitely betting big on Indonesia. We intend to invest over US $100 million in this high growth market and plan to expand our presence to the top 100 cities in Indonesia, including Yogyakarta, Bandung, Surabaya that we recently entered and breaking into Bali over the next 11 months.”  

Indonesia’s hotel market is characterised by a demand-supply imbalance of quality living spaces and OYO, since the launch in the country, has utilised its tech, operations, onboarding and transformational capabilities while creating an equilibrium between these factors. The country’s hospitality sector has displayed a sustainable and positive growth supported by higher travelling trend among Indonesians and the availability of more and more affordable transportation options in the market, especially budget airlines. OYO itself has noted rising trend of smart travellers in the country. When travelling for leisure or business purposes, they critically research for high quality, yet affordable accommodation options. This is where OYO Hotels plays an important role by fulfilling the demands through the technology led hospitality model.