Press Release
OYO Opens Another Door for Owners With Industry-First Initiative, Cash in Bank
Through this facility, OYO provides better renovation assistance to asset owners in the form of easy to avail, hassle-free and collateral-free trade advances within 48 hours
OYO Hotels & Homes, South Asia’s largest, China’s second largest, and the world’s sixth largest and fastest-growing chain of leased and franchised hotels, homes & living spaces, announced the second big initiative under its ongoing OYO Partner Engagement Network (OPEN) initiative – Cash in Bank (CiB) facility. With CiB, an industry first initiative, asset owners across India can benefit from quick, hassle-free and collateral-free business advances to upgrade or renovate their buildings, with the never seen before ease, turnaround time, and convenience. This will further help asset owners to create a never seen before “Chic, Pop, Energetic” look and feel that can further help them improve the guest experience and further improve the direct and repeat rate that’s already approximately 90%.
OPEN was inaugurated in April 2019 wherein OYO had made 3 key announcements – 6 core partner promises, an upgraded Co-OYO app for asset owners to monitor progress and a dedicated microsite for stronger interaction and engagement amongst the OYO India asset owner community. The launch of Cash in Bank facility is the second big initiative under the year-long OPEN programme and is the result of continuous engagement with asset owners across the country. Many of whom, asked the company to help them with financing expansions apart from the existing arrangement of securing loans from banking and non-banking financial institutions at discounted rates.
Commenting on the development, Aditya Ghosh, CEO, India & South Asia said, “With over 9,000 asset owner partners spread across nearly 260 cities in India & South Asia, we believe our asset owner community is a rich source of advice and suggestions which helps us get better every day. As a direct outcome of our constant engagement with the asset owner partners under the aegis of OPEN - OYO Partner Engagement Network, we realised the need for providing a quick and hassle-free financing facility to cater to their expansion and renovation needs. We believe this facility has the potential to be a game-changer for our asset owners and elevate their relationship with us. At OYO, we are on a mission to create quality living spaces and make it accessible and affordable for millions of our customers and we cannot do this without the active support and encouragement of our asset owner partners.”
To begin with, all the new buildings onboarded by OYO (less than 2 months old) and all the existing buildings of OYO (OYO Rooms, Spot on and Capital O brands only) are eligible to apply for Cash in Bank facility. OYO will provide a simple CIB Calculator which will allow asset owners to just enter the building code and the business advance amount required along with the tenure of the advance. Powered with data and AI capabilities, the calculator will instantly and accurately tell them whether the building is eligible for the advance along with the charges applicable. Additionally, this calculator will also provide them with the maximum amount eligible for that building. In order to cover the financial risks involved in an unsecured, collateral-free business advance, OYO will be charging a minimal service fee to the asset owner over and above the monthly installments to repay the principal amount. This industry-first initiative will ensure that asset owners are able to meet their judiciary requirements for renovations and upgradation work within 48 hours without the need for any supporting collateral.
OYO Hotels and Homes place immense trust in its 9000+ strong Hotel community across nearly 260 cities in India and aims to continue to innovate and provide the necessary support and assistance to its growing entrepreneurial network. For asset owners, OYO Hotels & Homes has already invested over thousands of crores in CapEx, appointed hundreds of GMs to oversee operations and customer experience, and set up 27+ training institutes to help standardise and globalise the hospitality experience.
About OYO Hotels and Homes:
OYO is the world’s 6th largest hotel chain operating from Tokyo to Texas and the world’s fastest growing chain of hotels, homes & spaces! With the @Leisure Group joining the chain, OYO today has footprints in more than 800 cities across 24 countries including UK, US, Japan, China, Malaysia, Nepal, UAE, Indonesia, Saudi Arabia, India and the Philippines. With over 20,000 buildings and 700,000 keys under management, OYO is backed by leading investors, including the SoftBank Vision Fund, Sequoia Capital, Lightspeed Ventures, Hero Enterprise, and China Lodging Group and has a mission to bring better living spaces for the world.
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