- OYO increases its Accelerator Program growth target for 2023 after encouraging response from first generation hoteliers
- OYO will now add 1000+ hotels to support over 100 first generation hoteliers as part of the Accelerator Program
- OYO has already supported 30 hoteliers and 250 hotels since the launch of the program in March 2023
- These hoteliers have recorded approximately 20% growth in revenue after joining this program
- OYO’s Accelerator Program to focus on leisure cities in the next phase of growth
The Success of Accelerator Program
The Accelerator Program was launched in March this year with a stated target supporting 30 first generator hoteliers. OYO has already added more than 300 hotels operated by 30 hoteliers since the announcement of the plan which is higher than the initial target of adding 200 properties in the first phase of the program. OYO has announced that it now plans to add more than 1000 hotels as part of the Accelerator Program by December 2023. It also plans to add more than 100 first generation hoteliers and offering financial assistance to facilitate expansion in new markets. It has already extended support worth Rs 10 crore.
Hoteliers who participated in this program recorded approximately 20% increase in revenue in three months.
Delhi NCR is a major contributor to the growth accounting for 40% of hotels followed by Hyderabad and Bangalore which together added 40% of hotels to the program. The rest of the growth came from other parts of India.
Benefits for first generation hoteliers
OYO Accelerator Program is aimed at encouraging and empowering first generation hoteliers to accelerate their hotel portfolio expansion as travel surges in both business and leisure cities. Under this program, OYO is also helping them achieve long-term profitability and increase earnings by offering them mentorship, access to technology, dedicated relationship managers, financial support, and access to OYO’s network of over 15,000 corporate accounts and more than 10,000 travel agents across India boost business prospects.
Elaborating on the encouraging response from the first-generation hoteliers, Anuj Tejpal, Chief Merchant Officer, OYO said “Since the unveiling of our Accelerator Program, we have been actively engaging with our hotel partners to gather their insights, concerns, and suggestions. Their enthusiasm and willingness to embrace expansion of their hotel portfolio have reinforced our belief that we are on the right path to achieving our goals.”
Ganesh K, Director, G Silver Hotels, Chennai expressed his satisfaction with the program and said “The Accelerator Program has helped us resolve operational issues quickly as we get a daily report on customer feedback etc. Additionally, it has also increased the occupancy in our hotels since the properties are now visible to a larger universe of guests”.
Deepak Rana, Owner of DSR Hospitality Service in NOIDA added “I have been working with OYO since 2017. The Accelerator program has enabled us to achieve swift growth, unlock the full potential of our properties and thrive in today’s highly competitive hospitality landscape. We have leveraged OYO’s advanced revenue management tools and techniques to ensure optimal pricing, maximise occupancy rates, and drive revenue growth”.
Hospitality sector shows signs of growth
The Indian hospitality sector is showing signs of promising growth in the next few years. CBRE South Asia recently unveiled its report, ‘Indian Hospitality Sector: On a Comeback Trail,’ shedding light on the sector’s growth and overall revival. It says that the sector is projected to attract over $2.3 billion in investments over the next 2-5 years. It also anticipates the addition of approximately 12,000 hotel rooms in 2023 alone.
To cater to the growing demand, OYO is now focusing on first generation hoteliers planning to grow their business in top leisure travel destinations such as Shimla, Amritsar, Udaipur, Goa, Mysore, Tirupati, Puri, Gangtok among others to expand its Accelerator Program network. The plan is also aligned with OYO’s focus on increasing the number of premium hotels brands such as Townhouse Oak, OYO Townhouse, Collection O and Capital O in 2023.