Oyo Enters the U.S. Budget Hotel Market
Skift Take
Oyo has a seductive model of renovating budget hotels, running them efficiently through technology, and marketing them directly to consumers. But the startup risks imperial overreach by entering markets like the U.S. that differ significantly from its core markets in India and China.
Oyo, a rapidly expanding Indian hospitality company, has entered the U.S. market by opening an office in Dallas and testing properties in Austin and Dallas.
It remains an open question whether the startup, which said it had raised $1.5 billion in venture financing, can bring its flagship service, franchised budget hotels, to the developed market of the U.S.
Oyo has claimed significant gains in its home country of India and other markets, including China, Malaysia, Nepal, and, as of this year, Indonesia.
On Tuesday, it said it had seen its "global stayed room nights" rise from 6 million in 2016 to 75 million in 2018.
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