India-based Oyo Hotels forays into Indonesia

19th October 2018 (Last Updated October 19th, 2018 14:35)

India-based OYO Hotels has announced its plan to begin the Indonesia foray with more than 30 hotels and over 1,000 rooms in three cities - Jakarta, Surabaya, and Palembang.

OYO Hotels has announced its plan to begin the Indonesia foray with more than 30 hotels and over 1,000 rooms in three cities – Jakarta, Surabaya, and Palembang.

The India-based hospitality company is eyeing expansion in the Southeast Asian market. The Indonesia foray comes following its entry into China.

Furthermore, it announced plans to invest $100m to launch its hotels over 35 cities in Indonesia, including Bandung, Yogyakarta, Bali over the next 15 months.

OYO has the backing of investors such as SoftBank and Sequoia India.

Currently, the hotel chain has presence in India, China, Malaysia, Nepal, the UK and the UAE.

OYO founder and CEO Ritesh Agarwal was quoted by e27.co as saying: “Indonesia is one of the top choices for both global and Indian travelers, and with our market learning and expertise we are ready to tap this opportunity.”

He further added: “This expansion is in line with our quest to support the country’s hospitality ecosystem and creating infrastructure for asset owners to grow and run successful businesses, all of this while ensuring high standards of quality.”

OYO forayed into Malaysia in 2016.

It was founded in 2014 by Agarwal, who earlier founded Oravel Stays, an accommodation portal that had drawn investments from VentureNursery, DSG Consumer Partners and Lightspeed.

In mid-2014, Oravel was closed as it could not achieve scale, following which Agarwal launched OYO.

Agarwal claims that Oyo has provided more than 100 thousand job opportunities in South Asia, and aims to create more than 60,000 direct and indirect jobs in Indonesia.