OYO Hotels makes Malaysia stepping stone to region


  • SMEBiz
  • Monday, 25 Jun 2018

INDIA-based OYO Hotels is looking to expand its presence in the South-East Asian market through its toehold in Malaysia.

The hotel operator has committed an initial capital of US$20mil (RM80mil) as part of its expansion in Malaysia, with plans to further double-down on investments here in 2019.

The company said it will grow its local workforce by more than 50 people by the end of the year and with more offices across the country.

OYO Hotels currently operates 50 exclusive, full-inventory, branded hotels in Kuala Lumpur, Selangor, Penang, Langkawi, Johor and Melaka.

OYO chief operating officer Abhinav Sinha said OYO Hotels has experienced strong growth in Malaysia in the first quarter of 2018. It is forecasting hyper growth moving into 2019. To-date, the company has served over 150,000 customers across 100,000 check-ins in Malaysia alone.

“Owing to our widespread presence, we are seeing very high demand for our hotels. Daily room nights increased five-fold in the last quarter alone. At this growth rate, we are looking at achieving a twenty-fold increase by onboarding 1,000 hotels over the next 12 months.

“With 50 hotels here at the moment, OYO Hotels is the only hotel network operating on such a scale while offering value for money to guests. Indeed, the Malaysian market is very promising for us which justifies our heavy investment here,” said Abhinav.

OYO Hotels partners with existing hotel properties on an exclusive inventory basis in a tech-based franchise setup. The company then takes ownership of the end-to-end customer experience in the properties, from the search and booking process to in-room amenities, service-delivery and check out.

The company is confident that its leverage on technology will power its growth here and in the region. It has a 250-strong team of engineers based at its headquarters in India, working on a variety of complex problems involving algorithms, data sciences, machine learning, user interfaces, workflows, artificial intelligence, Internet of Things and blockchain, among other things.

OYO Hotels is the first hospitality player to launch applications for the supplier side of the business network with end-to-end technology for all hotel partners to run operations smoothly with increased functional efficiency.

The company hopes to stir up the industry here while helping to boost the local economy with creating more than 5,000 jobs in the hospitality space alone.

OYO Hotels currently operates 90,000 rooms in 150 cities across India and is looking at 180,000 rooms by the end of 2018. It also recently announced plans to penetrate into the China market.


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