Oyo Hotels and Homes has reported a more than three-fold jump in revenue for its India operations for the year ended March 2018.
The SoftBank-backed hospitality chain also managing to rein in losses for the 12-month period.
The firm has also projected a revenue of almost Rs 1,500 crore for the current fiscal which, if met, will again be a three-fold jump over the previous financial year.
For the year ended March 31, 2018, the Gurgaon-based company reported a net loss of Rs 360 crore, a marginal rise from the net loss of Rs 355 crore it had reported in fiscal 2017.
Oyo hotels/rooms :
OYO Rooms, commonly known as OYO, is India’s largest hospitality company, consisting mainly of budget hotels.
It was founded in 2013 by Ritesh Agarwal and has since grown to over 8,500 hotels in 337 cities in India, Malaysia, UAE, Nepal, China and Indonesia.
Reasons for loss of Oyo hotels:
OYO reported an operating revenue of Rs 416 crore for the fiscal year 2018, compared to Rs 120 crore reported for 2016-17 financial year.
According to the CFO of Oyo Hotels Abhishek Gupta, “The marginal fluctuation was primarily due to spends on technology, team building and further investments in newer categories that the company entered during the said financial year”.
Revenue growth of oyo hotels :
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.
“To maintain this three fold growth year-on-year, the supporting infrastructure needs to be bigger and we need to invest ahead of time, in people and technology,” Gupta said.