India’s largest chain of budget hotels has expanded into the Philippines with an initial outlay of at least $50 million or P2.6 billion over the next few years, wanting to cash in on the growing technology-based tourism market here.
Officials of OYO Hotels and Homes yesterday said in a formal launching ceremony held in Taguig City that they expected their investment program to generate more than 1,000 direct and indirect job opportunities for those in the hospitality industry.
They said they had started operations in the Philippines in the past few months and OYO now had a portfolio of more than 21 hotels—both franchised as well as leased—spread across Metro Manila, Tagaytay City and Cebu City.
OYO’s plan is to spread out to more than 10 cities and locations in the Philippines by 2020, including Palawan, Boracay and Davao.
Globally, OYO is present in more than 500 cities in eight countries, with a total of 13,000 rooms as well as 3,000 homes that are available to guests.
“OYO is committed to offering customers a superior yet affordable stay and travel experience while helping improve the yield for independent hoteliers in the country,” said Abhinav Sinha, chief operating officer of OYO Hotels and Homes.
“We believe that by setting foot in the Philippines, we are advancing our vision of strengthening our foothold in Southeast Asia,” Abhinav said.
He said that with OYO’s technology and operational expertise, the company was enabling hotel owners with technology that would help them “drastically improve the customer experience while maintaining efficiencies, high occupancy and yields.”
Cited as examples were OYO 108 Spiral Suites in Novaliches, OYO 103 Artina Suites in Makati, and OYO Asiatel Hotel in Pasay City—all of which adopted the OYO brand in the fourth quarter of 2018.
OYO officials said these properties saw occupancy jump by as much as 80 percent in the first two or three months of being part of the OYO group.
“Our priority here is to ensure that we bring OYO Hotels’ topnotch service starting at P750 (per night) to the country, with the goal to become the most loved hotel chain,” he said. “Our growth in the country will be fueled by a strong local leadership and a team of young hospitality enthusiasts.”
Ankit Arya, country head for OYO Hotels in Philippines, said the Philippines offered an attractive market with sizeable internet and mobile presence, which complemented OYO’s business approach.
“We’ve received an overwhelming response to OYO’s offerings in the country since our soft launch and look forward to hosting more guests in the coming years,” Ankit said.