At the end of August, the Indian company OYO Hotels & Homes bought the Hooters Hotel near the Las Vegas Strip.
The company, led by 25-year-old CEO and founder Ritesh Agarwal, started operations in 2013 and claims to be the fastest growing chain of affiliated hotels, homes, managed accommodation and workspaces affiliated in the world, with 23,000 hotels and 125,000 vacation homes. spread over 80 countries.
In total, the company plans to invest around $ 20 million in renovating the Hooters Hotel. Agarwal told the Review-Journal that this was just one of the first steps in the company’s plan to expand into the United States.
This interview has been edited for length and clarity.
Why did you decide to get into the hotel business? Was it difficult to enter the industry so young?
While in between school and college, I was traveling on a budget and had to stay in not-so-great guesthouses, and found I was looking on the wrong side of the rope. The problem was not the lack of availability of affordable hospitality options; is that the majority of mid-sized and budget hotels did not have basic minimum standards of quality and service delivery.
At first, convincing hoteliers to partner with OYO was a Herculean task. Being an entirely new and untested business model, hotel owners were skeptical of the value and prospects we offered. Soon they started to see repeat customers and higher income. They also noticed how hotel operations, revenue management and customer relationship management became more efficient and convenient through OYO apps, and were convinced afterwards.
What is OYO’s business strategy?
We invest in the asset alongside asset partners and provide free design and advice to upgrade hotel infrastructure and design.
We manage operations for the real estate owner and empower over 23,000 real estate owners globally, empowering them to achieve higher ROI, access easy financing opportunities, transform their hotels and d ” provide good quality customer service, thereby considerably increasing occupancy and profitability.
Our design-driven focus on online conversion leads to better reviews and therefore higher business. Our in-depth renovation capabilities have allowed us to add up to 80,000 exclusive keys to our chain every month globally. With this, we’ve set a new benchmark for transforming and renovating assets in a record 14-30 days – a stark contrast to the industry standard of up to 90 days.
What are OYO’s expansion plans in the United States?
Earlier this year, we announced our intention to invest $ 300 million in the United States. We believe it is still “day zero” for us in the United States and we have a lot to learn and a huge opportunity awaits us.
The company’s ability to win customers by introducing its popular concept of “comfort design” and to deliver chic hospitality experiences at prices that are hard to ignore allows us to continue to grow at a breakneck pace. In no time, we have overtaken the scale of traditional and established hotel chain brands around the world, and the United States will be the key to OYO’s next wave of growth.
Is your business considering purchasing other properties in Las Vegas?
At the moment, we are focused on commissioning this property. The renovations are still ongoing, and we should be able to officially open the doors of the OYO Hotel & Casino Las Vegas by the end of the year. At OYO, we never say never, so stay tuned.
Why did the company decide to keep the Hooters restaurant on property?
It is a popular restaurant and also one of the most profitable Hooters franchise restaurants. We are therefore delighted to continue to have this restaurant at the property.
What is the target demographic of Las Vegas property?
With this hotel, we will continue to focus on realizing our popular concept of “comfort design” and delivering chic hospitality experiences. We are increasingly exploring new ways to connect with our guests, from millennials to young executives and families, in every city we enter, and through this hotel as well, we will seek to cater to this large audience.
We will look at which amenities will work best with the needs of our customers in mind. This will include upgrading some of the existing amenities such as food and beverage options – like the top-grossing Hooters franchise restaurant, the largest Steak ‘n Shake in the United States – the poolside bar, the 24-hour gym, casino games and parking, making it convenient for customers and city dwellers.
A spokesperson for OYO said earlier this year that the company aims to become the world’s largest hotel chain by 2023. How do you plan to get there?
I think if we continue to focus on our main mission, it will happen. But to be honest, I don’t care about being the “tallest” or “the fastest growing”. I am completely focused on our mission, that we have the opportunity to make travel and hospitality a reality for 3.2 billion middle income people around the world.
Operating in multiple geographic areas and offering a consistent product is both exciting and stimulating. Today there are OYO clients who actively stay with us in almost every country we have opened. We respect that each market is unique in its own way, so we localize the product experience and the interiors of our buildings, as well as our holistic approach.
Contact Bailey Schulz at [email protected] or 702-383-0233. To follow @bailey_schulz on Twitter.
