SAN FRANCISCO/NEW YORK—Hotel startup OYO Hotels & Homes announced plans to invest $300 million over the next few years to expand its presence in the United States. The budget hotel company, which has a large presence across South Asia, currently has more than 50 OYO Hotels in 35 cities and 10 states, led by a team of more than 350 ‘OYOpreneurs’ across 15 states. The brand’s concept of ‘comfort design’ centers on delivering high-quality and consistent ‘value-chic’ hospitality experiences.
With this newly announced investment, OYO plans to partner, manage, and open an average of one hotel per day. This growth in the United States will be driven by two brands—OYO Hotels and OYO Townhouse. OYO Hotels & Homes currently has a presence in Dallas, Houston, Augusta, Atlanta, and Miami, and plans to expand to cities like New York, Los Angeles, and San Francisco.
“We at OYO are thrilled to see our business grow in the U.S., our newest home market. We promise to bring new-age hospitality experience at a price point you never imagined; select service hotels are finally going to be fun and beautiful,” said Abhinav Sinha, COO, OYO Hotels & Homes, Global. “We are in the largest country in the world when it comes to the hospitality industry and there is a definite need here for chic and comfortable hospitality experiences at prices never thought of before.”
The company’s model combines design, hospitality, and technological expertise with financial acumen and operational capabilities to give owners a higher return on investment, access to financing, the ability to transform their properties, and quality customer service.
“As a full-scale hotel chain, we strive to bring real value to both owners and guests—and we’re convinced there is unlimited potential for rapid growth in our newest home market, the United States,” said Ritesh Agarwal, founder and CEO of OYO. “We started on the belief that everyone deserves a beautifully designed, chic, and comfortable living space. And everyone deserves a better life. We knew we could change the way people live.”
Agarwal, now 25, founded the company when he was 19 years old. Since then, OYO Hotels has attracted investors including Airbnb, SoftBank Vision Fund, Greenoak Capital, Sequoia Capital, and Hero Enterprise.