OYO moves to separate its Indian and global hotel business

The move will help each channel under the OYO brand growth independently. OYO is currently present in over 800 cities across 80 countries and has a current valuation of %5 billion.

Indian hospitality unicorn, OYO Rooms is undergoing a structural restructuring to streamline its operations and investor profiles. The company segmented its business under two entities separately handling Indian hotel business, and international and technology business.

The parent company, Oravel Stays will transfer the Indian Hotel Business to its subsidiary Alcott Town Planners. While, the Oravel Stays will continue housing the technology and international business arms of the company. The reason for this segmentation is said to be the company’s segment specific capital requirements, nature of risk, competition, human, and skill-set requirements among other needs. 

According to the company’s MCA filings accessed by Inc42, technology business has become an independent marketable product to serve various business models and has significant potential for growth in various sectors domestically and internationally. Therefore, it is said to require proper management and undivided attention of experts. Similarly, the International hotel business is said to have its own growth path and specific requirements.

“The segmentation of business will enable different business segments to grow independently with their focused vision, strategies, and operations. Along with attracting focused investors and strategic partners, and enable investors to separately hold investments which best suit their investment strategies and risk profiles,” the company filing added.

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