Budget hotel aggregator OYO Rooms has begun its operations in China, according to Entrackr. OYO’s website for China is currently showing seven hotel options in Shenzhen, with price ranging around ¥100 (Chinese Yuan) which nearly equals Rs 1000.
Entrackr claims that OYO is also looking for properties in cities like Beijing and Shanghai. Apart from the newest China, OYO’s foreign market presence includes Dubai, Malaysia and Nepal.
In September 2017, OYO had signed a Memorandum of Understanding (MoU) with Chinese multi-brand hotel group China Lodging Group Limited. As a part of this MoU, China Lodging Group also invested $10 million in OYO.
As per the MoU, OYO and China Lodging Group will explore co-learning opportunities that are of interest to both parties, including employee exchange programs, sharing of technology and intellectual property. The MoU also includes joint loyalty programs. OYO was to provide technology and operational expertise, while China Lodging Group will bring to the table its extensive coverage and development capability in China.
Just days before that, OYO also received $250 million in Series D round of funding.
As of June 2017, China Lodging Group had 3,541 hotels with 359,530 rooms in operation across 369 cities. The hotels include leased and owned, and franchised properties, mostly in the economy and mid-scale hotel segments. 24% of the rooms are under the lease and ownership model, while 76% are under the franchise model. On the other hand, OYO currently operates in over 230 cities across India, Malaysia and Nepal.
Last month, media reports suggested that OYO was going to begin operations in Dubai soon. A search on the company’s website listed two properties from Dubai. The company has hired Manu Midha to head its Middle East business. It is also reportedly looking to hire Oyo captain (AGM) in the largest city of UAE.
When the company expanded to Malaysia in 2016, CEO Ritesh Agarwal had said that it would also look at South-East Asia, Africa and South America markets.