Oyo to combine hotel and rental apartment businesses in Japan to cut costs

20th July 2020 (Last Updated July 20th, 2020 16:48)

Oyo in Japan is combining its hotel and its rental apartment businesses to reportedly cut down costs in the wake of coronavirus pandemic that has badly hit the hotel industry.

Oyo to combine hotel and rental apartment businesses in Japan to cut costs
OYO has 5,000 apartments and 200 hotels in Japan. Credit: Alexander Kaunas on Unsplash

Oyo in Japan is combining its hotel and its rental apartment businesses to reportedly cut down costs in the wake of coronavirus pandemic that has badly hit the hotel industry.

In 2019, Oyo ventured into Japan through its rental apartment business Oyo Life and expected to pace up the growth of its business with the backing of its investor SoftBank.

An Oyo spokesman confirmed to Businessinsider.in that the two businesses are complementary.

The spokesman added: “This is the right time to merge operational capabilities and technology that have been built by our teams in Japan. Globally, we operate a diverse portfolio of hotels, homes and rental accommodation under the umbrella of Oyo Hotels & Homes and similarly, we are integrating both our businesses in Japan with the belief that this will strengthen our value proposition for our asset partnersand guests.”

Oyo developed technologies such as local revenue partner integrations, on-demand cleaning services, dynamic pricing engine, among others to cater to the Japanese market.

In April 2020, Nikkei Asian Review reported that Oyo Life had commenced moving its employees, primarily in sales, to other SoftBank affiliates in the country.

In January 2020, prior to the lockdown, the Oyo Life had reported bookings of 4,000 rooms, according to a blog post by Kavikrut and Prasun Choudhury, who are board members of  Oyo Life, Japan and Oyo Hotels, Japan respectively.

This occupancy is considered to be high given that Oyo has 5,000 apartments and 200 hotels in the country.

In June, Oyo Hotels launched Scrubbed Clean programme in the US to ensure the safety of all staff and guests amid the Covid-19 pandemic.