Oyo hotel financing

Only one year after entering the China market, OYO has more than 8,000 hotels and 400,000 rooms in China. In addition, according to public information, OYO has raised funds for more than 8 times, with a total amount exceeding 654.38+650 million US dollars, including famous BNB financiers such as Softbank, Sequoia Capital, Lightspeed Venture Capital, Didi, Tencent, and aviation peers.

However, OYO's road is not always smooth. The rapid rise of OYO aroused the vigilance of the giants, and OTA such as Ctrip and Meituan began to "block" OYO. In addition, the actual operation of OYO has also caused doubts in the market.

Sucking gold-making a lot of money quickly

Super 8 times financing reached $6543.8+65 million.

Opened more than 8,000 stores in China.

In the hotel industry, people prefer to compare OYO with Internet companies such as OFO, Pinduoduo and even Luckin Coffee. "Next OFO", "Next Pinduoduo" and "Next Ruixing" are all labels on OYO.

In fact, this company, founded by 1993, a young man born in India, doesn't seem to resent this statement. Li Wei, chief financial officer of OYO, told the media that OYO and Pinduoduo's * * * are doing consumption sinking, grasping the price sensitivity of the audience, and allowing users to enjoy goods or services that they did not enjoy before. In addition, Li Wei also mentioned that OYO and Luckin Coffee have similarities in traffic strategies. They all get users at low prices, and then find relatively high-frequency users to do targeted marketing, thus expanding the number of users and catching up with traditional giants.

It is through this way of playing that OYO's market expansion in China is staggering. According to Shi Zhenkang, partner and chief operating officer of OYO Hotel, as of April 16, OYO Hotel has operated more than 8,000 hotels with 400,000 rooms in more than 290 cities across the country. Shi Zhenkang said, "If we look at the scale of a single brand hotel, we have achieved the first place in the China market; From the perspective of the entire hotel group, it is the second and can rank sixth in the world. "

"On average, I entered a city every 1.4 days and opened the store in nearly 3 hours." This is a summary of OYO speed.

Comparatively speaking, there are 3,800 hotels, 5,500 hotels and 4,000 hotels in China, which have been deeply involved in the industry for more than ten years. In other words, OYO exceeded their number after entering the market for more than a year.

In addition to the amazing speed of opening a store, OYO's "ability to absorb gold" is also enviable.

Recently, foreign media reported that Airbnb chose to confirm its investment in OYO on April Fool's Day. According to sources, the investment amount is about 65438+500-200 million US dollars. According to Caijing.com, Airbnb confirmed the investment.

Prior to this, according to public information, OYO has raised funds for more than 8 times, and the total amount of financing has reached 65.438+65 billion US dollars. The investors include Japanese Softbank, Sequoia Capital, Lightspeed Venture Capital, Didi, Tencent and other well-known "golden owners". 2065438+September 2008, OYO announced that it has obtained a total investment of 800 million US dollars, with an investment commitment of 200 million US dollars, of which 600 million US dollars will be used for OYO to continue to expand its business scale in China. This is the largest single financing record in the history of China hotel industry. By the end of 20 18, the market value of OYO was $5 billion.

Ctrip can't find OYO Hotel either.

debate

No joining fee, low threshold

Cause a lot of confusion

It is understood that there are no joining fees, room decoration fees, brand use fees, etc. Join OYO. OYO will provide free shopping tips, pillowcases and towels at the end of the bed, and standardize washing and shower supplies. OYO promises platform traffic and future management output, and only charges 3%-6% commission of annual revenue. In addition, after signing the contract with the hotel, OYO promised to "guarantee the bottom" of the performance, and once the performance fails to meet expectations, it will pay the hotel. This light mode of "zero-burden cooperation" and disguised subsidies has enabled OYO to quickly "incorporate" a large number of low-end single hotels.

The Red Star journalist called OYO and asked him to join the customer service as an interested franchisee. The basic requirements of customer service for journalists are "having fire protection, sanitation and business licenses, and the number of hotel rooms is more than 30", and other conditions are not hard and fast. Compared with traditional hotel chains such as Home Inns and Hanting, which start at five or six million yuan and have a minimum of 80 rooms, OYO's entry threshold is not high.

The rapid expansion and low threshold also lead to uneven levels of franchisees. According to media reports, in order to reach the number of new houses signed by the company, local business development personnel relaxed the standards for signing hotels, and signed contracts in many hotels with incomplete documents, few rooms or even no fire permits.

The brand-free single hotels empowered by OYO generally have problems such as outdated buildings and aging equipment, and OYO's low-cost transformation will not be systematically transformed. The reporter saw it online where to go. Com learned that in the comments of several OYO hotels in Guangzhou, consumers complained that the air conditioner was broken, the toilet was poorly drained, the bed was uncomfortable, the sheets were out of date, there were sanitary problems, the surrounding environment was noisy and the service attitude was bad.

The actual operation of OYO has also caused doubts in the market. On social platforms, some OYO certified employees pointed out that OYO has serious data fraud. There are also netizens who call themselves OYO franchisees. At present, the extensive management of OYO has not brought the expected benefits to the hotel. Last May, 5438+ 10, OYO set up an integrity and compliance committee, which adopted a "zero tolerance attitude" towards employees' violation of the company's integrity and compliance system, which also confirmed that OYO had problems such as management loopholes and data fraud.

visit

Some franchisees' online prices are five times that of offline stores.

There is a "zombie" hotel.

What can OYO bring to an ordinary single hotel? Why does OYO expand so rapidly?

Li Wei's public answer to the above questions is to increase the occupancy rate. "The core of OYO is to create value for single hotels-after joining OYO Hotel for three months, their occupancy rate has increased by 20-30% on average."

According to reports, after single hotels join OYO, OYO will cut prices to improve the occupancy rate. For example, the original unit price 150 yuan may drop to the price range between 120 and 140.

However, what is the actual situation? To this end, Red Star journalists recently visited a number of hotels in Chengdu that have signed agreements with OYO to find out.

OYO Baishun Hotel Exterior Location

Located in Jinhua Road, Jinjiang District, Chengdu, OYO Baishun Hotel, from the signboard, the red eye-catching "OYO" logo is printed in front of the "Baishun Hotel" and the "Enjoy Lightly" brand is hung. In addition to the "OYO" sign everywhere, white sheets, red bedspreads and pillows are the only similarities found by reporters in OYO Baishun Hotel and other OYO hotels.

From the check-in price, the "OYO" APP shows that the lowest price of OYO Baishun Hotel is 140 yuan/night, but the "Today's room rate" posted on the spot of Baishun Hotel includes 50 yuan-198 yuan/room. When asked whether to leave the online price or the offline price, the hotel owner said that "online and offline orders can be placed".

OYO Baishun Hotel Interior

"Spend less, live better" is the slogan of OYO. But unlike the publicity, the hotel owner told reporters that it is cheaper to stay in the hotel directly than to place an order online. "After working with OYO, they raised the price on the APP and then hung up." As for whether the actual occupancy rate has improved after the hotel hung the OYO signboard, the boss said that OYO has not brought obvious changes. "Online is higher than our previous listing price. How can the occupancy rate be higher now? "

According to the data, OYO promises to provide systematic management, operation strategy, channel promotion and management improvement for hotels joining OYO, so as to help hotels quickly increase their occupancy rate. In return, OYO charges the hotel a commission of 6% to 8%.

The owner of Baishun Hotel told Red Star News that OYO didn't provide much management help except sheets, pillows and other items. In addition, the Red Star journalist noticed that the hotel was displayed as "OYO Baishun Hotel" on OYO's APP, and the word "OYO" was not displayed on Baidu Map, Meituan and Ctrip.

In addition, the reporter also found that the online price of some hotels is five times the offline price.

On May 15, the reporter booked the "OYO Aishang Hotel" in Gulou South Street, Qingyang District, Chengdu at the price of 950 yuan/room, and then called the hotel. The hotel told reporters that you can check in directly at the hotel at the price of 188 yuan/room. "Few people will book our hotel through OYO platform, so our price on the platform is much higher than offline and other platforms."

In addition, Red Star journalists found that some hotels have terminated their cooperation with OYO, but OYO's APP has not deleted these hotels.

On OYO's APP, you can still see the information of "OYO Yunman Hotel" located in Sunshine Xinye Building in the east section of Chengdu's First Ring Road, and show that you can still make reservations through the APP. However, the hotel clerk told reporters that the cooperation with OYO has been terminated. If you need to check in, you can book through other platforms.

OYO's application shows that "OYO Yunman Hotel" can be booked through this application. However, the hotel staff told reporters that the cooperation with OYO has been terminated.

Why did you terminate your cooperation with OYO? The clerk told the Red Star journalist that OYO did not improve the occupancy rate of the hotel and was "out of place" with the hotel. "Our hotel is positioned as a boutique hotel, and OYO gives people the feeling that it is not a' boutique'." The reporter found that on the OYO platform, the price of the hotel is 845 yuan/room, while on other platforms, the price of Yunman Hotel is between 180 yuan -52 1 yuan/room.

think

While expanding, it has been controversial and questioned.

OTA giants jointly "blocked"

OYO's attacks on cities and land have been accompanied by many controversies and doubts. With the expiration of a large number of franchisees' contracts after entering China, the storm of canceling the contract with franchisees cast a shadow over this star company.

In this regard, Shi Zhenkang said that the rumor that "a large number of owners do not renew their contracts" has been exaggerated, and most owners have no objection to renewing their contracts. According to the latest hotel operation disclosed by OYO, the renewal rate of the first batch of large hotels signed in April and May last year reached about 95% when their one-year contracts expired.

However, many hotel owners in OYO, China, have to remove the door head even if they break the contract.

From last year 1 1 to now, neither Meituan Review nor Ctrip.com can find OYO Hotel. After the traffic entrance was closed, the passenger flow and income were much lower than before joining, and even there was a loss. If you remove the "OYO" prefix, you can go online on the OTA platform.

Although OYO is still in the stage of burning money in China market, the prospect is still unclear, but for OYO, which has activated 80% of the accommodation market by itself, the "catfish effect" brought by its sudden emergence has already appeared.

At present, industry giants including Ctrip, Meituan and Zhu Hua have begun to lay out "chain hotels" in China.

Meituan Liquor Travel Team has hatched the brand of "light accommodation", and Lv Yue Group invested by Ctrip has hatched the brand of "simple accommodation", which is mainly aimed at express hotels with room rate 100 yuan and more than 50 rooms in 250 yuan. In March of this year, Tongcheng Yilong launched the OYU hotel with the same positioning, free of joining fees, targeting more than 40 hotels. In April this year, Zhu Hua Group launched the direct selling platform "One Night" to realize * * * traffic resources with Zhu Hua and fully open its membership system to attract more single hotels. In addition, there are some Internet-born players in the market, such as "1 House" founded by the former China team, which was founded by one of the seven entrepreneurial students.

Liu Qi, a senior hotel observer, expressed concern about the current situation of the industry, thinking that it is a market of 100 billion yuan, but the influx of people will not immediately make the business of these small and medium-sized hotel owners better. "At present, I haven't seen any company that really deeply integrates the market. The game of capital is to pick a flower when you see it. No one really thinks about how to cultivate it after picking this flower. "

Editor Li