OYO, the India-based budget hotel chain and booking platform, plans to focus its growth efforts on India, Southeast Asia, and Europe while pulling back on its former core markets of China and the U.S.
Ritesh Agarwal, OYO’s founder and CEO, detailed that new strategy at a Reuters Next Newsmaker discussion Wednesday.
This doesn’t mean that OYO, which seemed to value growth at all costs until late 2019 and into early 2020, when it carried out a series of restructurings around the world, will withdraw from the U.S. and China.
But Agarwal said OYO plans to “double down” on India, Southeast Asia and Europe as focus areas.
He said OYO still has scale in China, but high customer acquisition costs there led to margins 4-5 percent lower than other markets.
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