While it’s been just four months since announcing operations in the Philippines, Oyo Hotels and Homes, South Asia’s largest, China’s largest single hotel brand and second-largest hotel group and the world’s fifth-largest and fastest growing chain of fully operated, franchised, and leased hotels, homes, managed living, and workspaces is rapidly becoming the preferred hotel chain within the country for both asset owners and travelers alike. Over 100 asset owners have become a part of Oyo’s chain in the Philippines and the hospitality company has managed to add more than 110 hotels and 3,100+ exclusive rooms in 10 cities, securing almost 10 times growth in only four months. Out of these 110 buildings, currently more than 75 hotels are running operational and the rest are in the process of transformation. On an average, the operational assets witness up to 80 percent occupancy in a brief span of three months post becoming a part of Oyo’s chain.
Ankit Arya, country head of Oyo Philippines, explained, “We are supremely committed to empowering asset owners in the Philippines. In fact, Oyo has become a preferred choice for asset owners in the country with many owners choosing Oyo after experiencing other hotel chains. We offer user-friendly technology and in addition to this, we work closely with all our asset owners while supporting them with every aspect of hospitality ranging from staff training to regular audits at hotels. These end-to-end solutions ensure that the hotel owners who are a part of Oyo’s chain of hotels are delivering quality-assured and standardized stay experience to guests, resulting in higher review scores across channels. Everything related to their property can be easily monitored and managed through the Oyo applications. Further, our strong back-end system ensures transparent, regular reporting and timely payments every 30 days—very important for cash flow management at the asset owners end.”
OYO indeed has received very positive reviews from the asset owners, especially on how it improves the room occupancy and creates a more efficient business operation. Conrad Manalac of Oyo 108 Spiral Suites in Manila said, “When we started the hotel, we faced a lot of problems ranging from occupancy to contractual agreements with the previous hotel provider. Thankfully, Oyo was able to solve all this. We are very excited to be a part of Oyo’s chain. Oyo was able to double our occupancy as it trained our personnel while ensuring stringent quality standards. The feedback from guests has increased from 8.5 to 10. I found Oyo to be reliable, consistent, and professional. I would definitely recommend Oyo to all my friends and guests.”
Nestor Leal of Oyo 115 Northridge Mansion in Manila, commenting on his association with Oyo, said, “We have seen the difference between Oyo and other hotel groups in the Philippines. We have found their system is much better and having good quality services. Before joining Oyo we had problems in terms of rates and rental income with other hotel providers. Still, with Oyo everything has a good direction, even regarding maintaining the appearance of the hotel itself.”
Ankit added, “Today, OYO has more than 80 percent of its hotels rated 8+ on the customer delight score on Booking.com when compared to only 30 pecent properties of the overall hotel universe in the Philippines is rated 8+. The quality of our local execution and operations is maintained by our highly competent team on the ground. Currently, we have more than 100 talented, local Filipinos working with us out of which 30+ are a part of our civil engineering team which is capable of transforming a hotel within a matter of three to 20 days, depending on the extent of transformation required. They have an incredible understanding and expertise of the hospitality landscape in the Philippines. With a total of $50 m investment, we look forward to expanding our presence and adding 20,000 exclusive keys to our hotel chain in the Philippines by 2020.”
OYO has revolutionized the fragmented and legacy-driven budget hospitality space by empowering small and independent asset owners with the operational capabilities and technology that enables them to compete with big hotel chains and achieve high occupancies and therefore yields. The biggest differentiating attribute of the company is the full-scale fulfillment led model that it builds, with pioneering scale and efficiency that starts with supply acquisition, renovation, hospitality and operations, technology and omnichannel distribution across online and offline channels. Oyo brings its own technology based on artificial intelligence to hotels around the world, for better revenue management. The company helps independent hotel owners to manage all daily functions of the property—visibility bookings, sales channels, customer requests, housekeeping, and finances.