By James Mathew
OYO has also initiated cost cutting measures by eliminating all non-essential expenses to limit the dent on the company's financials during this period
Hospitality chain OYO says the financial impact of the recent lockdowns and government imposed travel restrictions on its operations in the GCC market was lower than most of the global hotel chains.
The Delhi-NCR-headquartered hospitality chain also said OYO is currently fully operational in the UAE and Saudi Arabia, barring a small number of partners who have chosen to keep their properties closed for various reasons.
“Our revenue fell and occupancies dropped by over 50-60 percent. This is lower than the industry benchmark where global leading hotel chains have experienced drop in revenues by as much as 75 percent,” Manu Midha, OYO’s Middle East Head, told Arabian Business in an exclusive interview.
OYO has also initiated some cost-cutting measures by eliminating all non-essential expenses to limit the dent on the company’s financials during this period.
Midha said he's hopeful about a faster pick up in business in UAE and Saudi markets in the coming months.
“While these are early days yet, the signs so far have been promising with our available capacity have almost doubled from April and our RevPAR (revenue per available room) has increased in May,” Midha revealed.
OYO’s expectations of a pickup in business, Midha said, are based on some of the emerging trends such as travel destinations near larger cities showing very high occupancies during weekends and customers’ preference for long stays, especially with offline partners.
He said over the last two months, OYO has been able to support its partners by capturing new pockets of demand that emerged due to the crisis.
“These included extending the stay for customers who couldn’t return home, special deals for stranded travellers and office employees, campaigns to support medical professionals as well as tie ups with hospitals and companies,” he said.
“Supporting our partners and the community through these initiatives will continue to be a priority in the short term.”
According to the company, OYO Hotels & Homes operates accounts for 4,461 keys in 310 hotels and homes in the UAE.
OYO UAE has also hosted over 80 nationalities across its properties in the country since its launch in October 2018.
The SoftBank-backed Indian startup unicorn is currently present in about 800 cities in various countries.