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Oyo occupancy in India still at 30% of pre-COVID levels: Report

Oyo has re-started operations in 20 states and union territories after lockdown restrictions were lifted

July 13, 2020 / 02:20 PM IST

The occupancy levels at Oyo Homes & Hotels is still around 30 percent below pre-COVID-19 levels in India, with a pick-up seen only in a few cities after lockdown restrictions were lifted in phases from June 8 onwards, as per the company's Founder Ritesh Agarwal.

The company has re-started operations in 20 states and union territories (UTs), but “has a long way to go before reaching pre-COVID-19 levels,” Agarwal told The Economic Times.

Cities such as Bengaluru, Hyderabad, Kolkata, Ahmedabad and Gurgaon are half-way to recovery, he said, noting that bookings “have increased and in terms of absolute volumes is a small but significant green shoot.”

Agarwal expressed caution about business in the United States but added that there has been a recovery in states like Florida, North Carolina and South Carolina. In China, he said occupancy “continues to grow steadily” around the mid-40s levels; and that margins in Europe are “healthier than pre-COVID-19”.

He noted that Oyo Vacation Homes in Europe in fact recorded operating profits in May and June, where bookings for Scandinavian business Dancenter doubled year-on-year, while Belvilla units in Germany and Netherlands saw 80 percent rise.

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While he denied any move to restructure, Agarwal said businesses must stay agile and evolve to overcome challenges.

He also addressed the issue of disputes with hotel owners, clarifying that 98 percent of Oyo’s assets are revenue sharing based, which will be “fair and incentivise partners”.

“Oyo is working to simplify deal contracts and reconciliation statements … creating robust channels for communication and aligning … price volume equations,” he said.

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Moneycontrol News
first published: Jul 13, 2020 02:20 pm

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