News ReleaseOYO USA’s per hotel revenue surpasses pre-pandemic levels in 2022, outpaces industry with 18% growth
OYO
Global travel technology company, OYO’s USA operation announced that it has outpaced the budget hotel segment’s growth in per available room revenue (RevPar) with an 18% rise in 2022 vs pre-covid year, 2019. The budget hotel segment in the meanwhile, grew by only 6% in the US, according to STR reports. OYO has seen significant growth in its priority markets of Miami, Houston and Phoenix, where it has sizable concentration of hotels. According to STR Miami Sub Market report, the budget segment in the region saw a 21% jump in RevPar in 2022 vs 2019 while OYO hotels in the region saw a 28% uplift in RevPar in 2022 vs 2019, which translated to ~1.3x higher growth than the other budget hotels in the region. Overall, the region has witnessed a shift in demand pattern with majority of bookings coming from domestic tourists. OYO saw a 13% jump in RevPar in Houston region while the budget hotel segment here saw a meagre 0.16% growth in RevPar, according to STR Sub Market report. For OYO, the increase in demand in the region can be attributed to uptick in business travel, given the region’s proximity to the oil & gas hub. A popular leisure market, Phoenix saw a 32% jump in RevPar in 2022 vs 2019 whereas OYO’s hotels in the region saw 41% jump in RevPars, again, ~1.3x higher than industry revenue per available room. Talking about the recovery, Gautam Swaroop, CEO OYO International said, “OYO’s US hotels have seen a significant improvement in per available room revenue in 2022, surpassing industry average. Domestic tourism has spearheaded this uplift with leisure and revival of business travel in 2022, leading the way. After two years of travel constraints, the US government easing restrictions in summer 2022 has played an important role in opening up domestic travel in the country and paving way to creating newer tourist pockets across the country.” OYO offers hotels access to a large base of regular customers through its app and website, and also lists hotels on multiple Online Travel Agents (OTAs) to boost booking demand and, therefore, revenue. OYO’s best-in-class Artificial Intelligence-enabled pricing software automatically drives the best booking prices across all channels, based on room type, seasonality and other factors, therefore, enabling such doubling of revenues. The company also helps ensure great experience for customers, with ease of search and quick booking experience, highly competitive room prices, automated tools such as Artificial Intelligence powered chatbots to quickly resolve customer queries, loyalty programmes and easy refund, if needed. OYO US recently announced that it witnessed a 46% increase in per room revenue (RevPar) for its hotels since COVID (2020) with the strongest uplift at 64%, recorded during the peak season months of June, July, August vs the same period in 2020. For OYO US, coastal Oregon, Miami, Myrtle beach, Houston and San Antonio emerged as the destinations with highest RevPar in 2022. Travel recovery was largely led by domestic travel in the US. Disclaimer: Oravel Stays Limited is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (the “Equity Shares”) and has filed the Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The DRHP is available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges, i.e., BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the Global Coordinators and Book Running Lead Managers, i.e., Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and Citigroup Global Markets India Private Limited at www.investmentbank.kotak.com, www.jpmipl.com and www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm; the websites of the Book Running Lead Managers, i.e., ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited at www.icicisecurities.com, www.nomuraholdings.com/company/group/asia/india/index.html, www.jmfl.com and www.db.com/India, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, refer to the Red Herring Prospectus which may be filed with the Registrar of Companies in the future, including the section titled “Risk Factors”. Potential investors should not rely on the DRHP filed with SEBI for making any investment decision. The Equity Shares offered in the Fresh Issue (as defined in the DRHP) and the Offer for Sale (as defined in the DRHP) have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) within the United States only to “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) in transactions exempt from, or not subject to, the registration requirements under the Securities Act, and (ii) outside the United States in offshore transactions in reliance on Regulation S under the Securities Act and pursuant to the applicable laws of the jurisdictions where those offers and sales are made. There will be no public offering of the Equity Shares in the United States. Contact Details Anupriya +91 97911 63065 anupriya.d@oyorooms.com Company Website https://www.oyorooms.com/
February 13, 2023 06:50 AM Eastern Standard Time
