The Japanese unit of India’s Oyo Hotels & Homes will be merging its hotel and short-term residential businesses all due to the mounting pressure because of the coronavirus pandemic pushing the Softbank backed startup to revamp itself.
This is the latest move by Oyo’s in a race for profit worldwide as the outbreak has put pressure to a company whose cash-burning strategy, with SoftBank’s backing, was already under examination. Oyo after gaining grounds in 80 countries had to lay off thousands of employees and also grant leave of absence as the travel demand was hit hard by the pandemic.
Oyo Hotels Japan operating partner Prasun Choudhary said that the merged body will “provide a single platform covering all the availabilities from hotel rooms, to residentials for rent, to vacation rentals,”.
With both Oyo Hotels and the residential brand, Oyo Life combining, Oyo target is to lower its sales and marketing costs. This will help out in creating a better perception in the customers. Japan is the first country where Oyo operates different business come under different companies.
Choudhary further said, “It’s a very tough process, but we know there are so many synergies for both of us. We have very strong leadership in both Life and Hotels sides, and all of us thought it is the right time for us to start the process,” Choudhary said.
“It’s a very tough process, but we know there are so much synergies for both of us. We have very strong leadership in both Life and Hotels sides, and all of us thought it is the right time for us to start the process,” Choudhary said.
“We are probably the only tech company that provides all types of living spaces in Japan. Providing the single platform will be much simpler in branding,” said Oyo Technology & Hospitality Japan country head Ryoma Yamamoto. “Given the COVID-19 situation, completing processes online will be more important than ever [to minimize infection risks],” a person close to the deal said.
“This is the right time to merge operational capabilities and technology that have been built by our team in Japan. Globally, we operate a diverse portfolio of hotels, homes and rental accommodation under the umbrella of OYO Hotels and OYO homes and similarly, we are integrating both our businesses in Japan with the belief that this will strengthen our value proposition for our asset partners and guests.” an OYO spokesperson told Business Insider.