Oyo makes JV with SoftBank Corp and SoftBank Vision Fund to commence hotel business in Japan.
Oyo holds 50% stake in OYO Hotels Japan GK and SoftBank Corp and its vision fund hold a 25% stake each.
Oyo also launches housing rental business OYO Life in Japan.
Oyo Hotels and Homes have made a grand entry into Japan by doing a joint venture with its biggest institutional investor, SoftBank Corp and SoftBank Vision Fund. The Joint Venture is named OYO Hotels Japan GK and it will be led by the head of South and East region and Vice President of operations, Prasun Choudhary as the operating partner.
According to ET report, Oyo will have a 50% stake holding in Oyo Hotels Japan GK, while SoftBank Corp and it’s $100-billion Vision Fund will each hold a 25% stake in the venture.
According to SoftBank Corp President and CEO Ken Miyauchi, “We are happy to deliver Oyo’s innovative service to the Japanese market. Given our shared vision for a digital future, we are delighted to support a Vision Fund portfolio company in deploying cutting edge technologies and services to Japan.” He also added Combining Oyo’s most advanced business model with SoftBank Corp’s knowledge of the Japanese market, we will offer brand-new hotel experience to travelers in Japan.
Oyo Hotels Japan provides several values for owners including reservation system, dynamic and flexible pricing and contributing to the elimination of labor shortages. With Oyo Hotels Japan, Oyo is planning to harness its business model and technology-led operational capabilities to provide convenient and comfortable accommodations to guests and travelers in Japan and craft enhanced business opportunities for its partners.
Ritesh Agrawal Oyo CEO and founder said, “Japan is rapidly becoming as one of the most popular tourist destinations in Asia. We, at Oyo Hotels & Homes, visualize this as a giant opportunity and are excited to support the growth of the local economy by promoting tourism.” We are excited to have support from SoftBank as always and plan to enter the hospitality market in Japan with full valor. Oyo has also launched housing rental business OYO Life in Japan.
Oyo is founded by Ritesh Agrawal in 2013 and has 4.58 lakh rooms globally by end of 2018 and its valued run rate released at $1.8 billion. The Hotel giant aims to earn revenue of over Rs. 1,400 Crore in Financial Year 2019.
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