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OYO hotels and homes has seen its losses widen to $355m (££272m) despite global consolidated revenues quadrupling to $951m (£729.5m).
The Indian-based company said the loss was attributed to the “inherent costs” of establishing new markets, including those related to talent, market-entry, operational expenses among others.
It added that in mature markets like India, the company reduced its losses from 24% to 14% of revenue in FY19 to $83m (£63.7m).
Business operations in its home country contributed to nearly 63.5% of revenues or $604m (£463m) of this consolidated figure as the business clocked a 2.9X growth.
Nearly 36.5% or $348m (£267m) was contributed by the company’s operations outside India, primarily China, which it said “signifies its strong commitment towards building a sustainable global business at scale with improved operating efficiencies”.
The company also reported an increase in both daily guest check-ins across its network as well as an increase in hotels and asset owners across the world. It now has over 43,000 asset partners and hosted over 180 million guests from 120+ nationalities between January – December 2019.
Abhishek Gupta, global CFO of OYO Hotels and Homes, said: “We have crossed an important milestone of achieving global revenue of $951m in FY 2019, a 4.5 times increase on a year-on-year basis.
“OYO’s relentless focus on offering an exceptional guest experience, delivering value to asset partners and constant technological innovation supported by the hard work and perseverance of every OYOpreneur has been the core propellers behind this performance.”
He added: “As we work towards consistently improving our financial performance, ensuring strong yet sustainable growth, high operational and service excellence and a clear path to profitability will be our key to our approach in 2020 and beyond.
“The company’s increased focus on corporate governance and building a high-performing and employee-first work culture will also drive this next phase of sustainable growth for us. We look forward to adding value to the experience of travellers and asset partners across the globe.”
