OYO, a global hospitality technology company, has announced its goal to double its premium hotel portfolio in Indonesia by the end of 2023. Currently, the company owns around 200 properties, but it aims to take the number to over 400 by the end of the year.
The company is targeting a mix of business and leisure destinations such as Bali, Java, Kalimantan, Sulawesi, and Sumatra. OYO offers mid-premium accommodation options through its brands, such as Capital O, Collection O, Townhouse and Townhouse Oak.
According to Ankit Tandon, the global chief business officer and chief executive officer (CEO) of Southeast Asia and the Middle East said that Indonesia is one of OYO's most mature markets in terms of scale and unit economics. In 2022, OYO served 253 corporates, which is a 237 per cent year-on-year (YoY) increase from the 75 corporates served in 2021. This reflects a steady rebound in business travel in Indonesia.
OYO plans to identify premium properties, equip them with the latest technological tools, increase their visibility and improve their revenue. The company will adopt a three-pronged strategy to drive growth, which includes maximising local market potential, innovation in technology to address market pain points and strong collaboration with industry stakeholders. In 2022, Indonesia saw between 633 million and 703 million domestic tourist trips, and the tourism ministry aims to attract up to 7.4 million international tourist arrivals and 1.2-1.4 billion domestic tourist movements in 2023.
A report by JLL, a property consultancy firm, predicts that green shoots are emerging for the hotel sector, with occupancy levels expected to reach above 50 per cent this year and an investment of $300 million in 2023. OYO plans to play a role in driving this growth. Since entering Indonesia in 2018, the company has recorded 15 times growth, and its bookings from May-November 2022 rose 90 per cent compared to the same period in 2021.
The company is planning to go public in the Indian stock market with its long-anticipated initial public offering (IPO) and has set a deadline of mid-February to refile its draft red herring prospectus with the Indian stock market regulator.
