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OYO Hotels & Homes delivers a 3.5x growth in revenue in FY 2017-18 at Rs 416cr for India operations

OYO Hotels & Homes, South Asia’s biggest, one of China’s top 3, and the
world’s fastest-growing chain of leased and franchised hotels, homes &
living spaces, reported India financial results for FY 2017-2018. As per
consolidated audited financials, OYO India has witnessed a 3.5x revenue
growth, reporting an operating revenue of Rs 416cr, compared to Rs 120cr
reported for FY 2016-17. The revenue growth has been driven by strong
underlying business drivers notably increase in exclusive room supply, two
times increase in stayed room nights and consistent margin expansion.
Partnering with OYO significantly improves the quality of the standalone
hotel and improves occupancy from 25% to 65% on an average, increasing the
yield on underutilized assets for asset owners. The growth trend continues
in FY 2018-19 with revenue estimates of Rs 1,400cr+.

The robust business model with limited marketing spend generates
double-digit positive contribution margins. OYO continues to invest in
technology and build long term capabilities while getting onboard the top
talent in the country. Margin expansion and a high degree of operating
leverage in the business model has resulted in more than 50% improvement in
economics with the losses as a % of realised value coming down from 44.5% in
FY 2016-17 to 20.3% in FY 2017-18. In FY 2018-19, OYO estimates further
improvement in the economics of close to 50%, with losses going to down to
10.4% (Estimates).

OYO’s capabilities are moats that allow it to stay true to its mission of
creating quality living spaces.

93%+ of OYO’s demand comes through its own channels signifying low
dependence on 3rd party online travel agents (OTAs). Repeat customers for
OYO generated 73% of revenue in Q4 2018 (Oct-Dec) bringing in an industry
leading metric. This can be attributed to a seamless product experience,
efficient operations, and solid distribution capabilities.

Globally, OYO Hotels & Homes is now present in 500+ cities across eight
other countries – India, China, Malaysia, Nepal, UK, UAE, Indonesia, and the
Philippines, hosting guests in over 13,000 franchised and leased hotels,
over 6000 homes. The company has over 450,000+ fully controlled leased and
franchised keys as at December 2018 with realized value run-rate of $ 1.8B
(4.3x Y-O-Y growth).

*Realised run rate means – Realised value net off cancellations, discounts
and forward bookings annualised on the basis of December of the respective
year.

*Advocates are defined as guests, who have stayed minimum 5 times at OYO in
last 6 months with minimum 3 bookings made using our app

About OYO Hotels & Homes:

OYO Hotels & Homes is South Asia’s largest, one of China’s top five, and the
world’s fastest-growing chain of hotels, homes, and spaces, with footprints
in more than 500 cities across India, China, Malaysia, Nepal, the UK, the
UAE, Indonesia and more recently the Philippines. OYO Hotels & Homes is one
of a kind and has pioneered the world’s first full-scale technology-led
business model in the hospitality and real estate industry. It currently
operates over 13,000 franchised or leased hotels and over 6,000 homes as
part of its chain. In India, OYO is present in over 180 cities, and hosts
guests in over 8700+ properties, in over 170,000 rooms. OYO is backed by
leading investors, the SoftBank Group, Sequoia India, Lightspeed India, Hero
Enterprise and China Lodging Group. For more information, log on to

https://www.oyorooms.com/