OYO to Continue Global Expansion Plan Despite Losses

New Delhi, February 18, 2020:

OYO Hotels and Homes will continue with its plan to expand its services in overseas market despite losses in the last financial year.

According to latest reports, it plans to expand itself in Latin America, China and the United Kingdom. OYO Board member Aditya Ghosh said that the hospitality startup would focus in profit-making in India in the upcoming days.

OYO sees a potential market in China. According to the company, China and other international markets, which were in “development and investment mode", accounted for 75 percent ($252 million) of losses during FY18.

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Reports suggest net loss as a percentage of revenue grew to 35 percent in FY19 from 25 percent a year ago. However, in its oldest market India, the startup narrowed its losses to 14 percent of revenue in FY19.

OYO has improved its gross margin in its home country from 10.6 percent in FY18 to 14.7 percent in FY19. It needs mention here that OYO has been laying off its employees across India citing restructure plans. It laid off close to 1200 employees in India in a bid to overcome losses and cut down on expenses.

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OYO has emerged as one of the major hospitality entities in India. It has a portfolio of over 35,000 hotels,1,25,000 vacation homes, and over 1.2 million rooms across 80 countries and 800 cities.

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