Hospitality chain OYO Hotels and Homes announced that its losses have come down to 14% in FY19 from 24% in FY18. With a 2.9 times revenue growth in India, a total of $604 million was recorded. The SoftBank backed company recorded a consolidated total of $951 million in revenue in 2019 which is 4.5 times higher than in 2018.
Their global market contributed to 36.5 percent in total sales while India contributed 63.5 percent to the same. The gross margin in India increased to 14.7 percent from 10.6 percent. OYO cited new market expansion and operational costs are some of the reasons for the loss. The company’s primary presence outside India is in China and the operations there accounted for 36.5 percent to the losses.
An increase in regular guest check-ins was noticed across the network and there was also a higher number of hotel and asset owners from across the world. OYO currently has 43,000 asset partners and has hosted over 180 million guests from 120 countries in 2019.
In a statement made by Global CFO of OYO Hotels & Homes, Abhishek Gupta, he says- “As we work towards consistently improving our financial performance, ensuring strong yet sustainable growth, high operational and service excellence and a clear path to profitability will be our key to our approach in 2020 and beyond”
OYO has been seeing mass layoffs globally which is reducing their manpower significantly. The reason cited for these layoffs was restructuring the organization. The company’s app is ranked 3rd globally with over 10 million downloads as of today. They own around 43,000 properties which provide a million rooms across 80 countries.