OYO Hotels & Homes, one of the fast-growing India-headquartered hotel chain backed by SoftBank, has officially launched in Vietnam, rolling out potentially a USD 50 million investment in the country over the next few years to capture its booming tourism sector.
OYO started operating in Vietnam several months ago ahead of this launch to explore the market and to “reach a certain scale and perfect the model,” said OYO Global Chief Technology and Product Officer Anil Goel in an interview with KrAsia.
The chain now claims it has already over 90 hotel partners across 6 major cities in Vietnam, which are Hanoi, Ho Chi Minh City, Da Nang, Phu Quoc, Vung Tau and Nha Trang – with the goal to become the largest hotel chain in Vietnam by the end of 2020 with presence in 10 cities and 20,000 rooms. Its competitor, Reddoorz, which only operates in Southeast Asia, was also launched in Vietnam back in March.
OYO Vietnam Country Head Dushyant Dwibedy noted that most hotel partners of OYO in Vietnam are mid-range and budget hotel owners with a smaller number of rooms, who are willing to adopt OYO’s technology-based solutions to transform their hotel operations. Dwibedy does not disclose the fees that hotel owners have to pay in order to join OYO in Vietnam but said such fees can be “flexible” with OYO’s commitments to generate more revenues back to the hotel partners.
In China, OYO is shifting to a guaranteed revenue model where hotel owners are promised a fixed income no matter the actual occupancy, while OYO takes commissions if revenues exceed this target.
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