Career Decision: Should Jakayla Pursue a Position with OYO Hotels USA?
Consideration of key issues such as value alignment, salary, benefits, and career growth in deciding whether Jakayla Michel should apply for a position with OYO Hotels USA. Analysis of the company's strategy, target customers, and mission, leading to a recommendation for Jakayla to pursue a suitable position with the company based on her values and potential for long-term career growth.
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Should I Stay or Should OYO OYO? ALTUM CONSULTING MEMORIAL UNIVERSITY
Agenda 1. Challenge Kim Sheppard 2. Analysis Curtis Whelan 3. Alternatives & Recommendation Kim Sheppard 4. Implementation Plan Christina Fong 5. Financials & Risks Evan Foote 6. What Success Looks Like Christina Fong
Challenge Should Jakayla Michel apply for a position with OYO Hotels USA
Key Issues Value alignment Salary & benefits Career growth
Objectives Career shift Long-term career growth potential Meaningful career Determine if OYO opportunity is substantial and real
Recommendation Jakayla Michel should pursue a suitable position with OYO Hotels USA
ANALYSIS CURTIS WHELAN
Analysis Focus Areas Jakayla OYO OYO Strategy Target Customers OYO Mission Trajectory
Values & Position Jakayla Michel 1. 2. 3. Risk Aware Continuous Improvement Value Driven Michel was looking for a career shift. Michel s Skillset & Ambition Could Help Her Carve Out a Meaningful Career with the Company.
Values & Position Jakayla Michel 1. 2. 3. Risk Aware Continuous Improvement Value Driven Michel was looking for a career shift. Michel s Skillset & Ambition Could Help Her Carve Out a Meaningful Career with the Company. Not Every Company is a Fit. Find the Ones that Are.
Jakaylas Values & Position Jakayla Believed in OYO s Mission of Bringing a Clean Bed and Safe Environment to All Travelers at a Budget Price. A Demonstrated Passion and Commitment to Helping People Experience the World and It s Offerings.
Jakaylas Values & Position Jakayla Believed in OYO s Mission of Bringing a Clean Bed and Safe Environment to All Travelers at a Budget Price. A Demonstrated Passion and Commitment to Helping People Experience the World and It s Offerings. The Stars Align at a Glance.
OYO Mission We have only one mission to increase occupancy and revenue by bringing quality living spaces to over a billion people.
OYO Mission We have only one mission to increase occupancy and revenue by bringing quality living spaces to over a billion people. Aggressive Growth Mindset Aligned with Values.
OYO Strategy/Business Model Franchise Model ($ 50K Fee) Current Revenues 90% 10% OYO Partner Incremental Revenues 80% 20% OYO Partner Asset Owners Fund Renovations with Support From OYO.
OYO Strategy/Business Model Franchise Model ($ 50K Fee) Current Revenues OYO Partner Incremental Revenues OYO Partner Asset Owners Fund Renovations with Support From OYO. More of a Partnership Model than Franchise.
OYO Strategy Business Model Before OYO Occupied Vacant 75% 25% After OYO Occupied (After 3 Months) Vacant Occupied (Long Term) 65% 10% 90%
OYO Strategy Business Model Before OYO Occupied Vacant 75% 25% After OYO Occupied (After 3 Months) Vacant Occupied (Long Term) 65% 10% 90% The Model Works. It s Been Proven.
The Selling Point Predict & Improve Returns on Investment & Revenue per Available Room with Pricing Algorithm. App Receives 350,000 Daily Visitors. 24/7 Customer Support.
OYO Targets Partners Undermanaged Real Estate Assets Users Tech-Savvy Millennials
OYO Targets Partners Undermanaged Real Estate Assets Users Tech-Savvy Millennials Targeted to Help Their Partners & Users.
OYO Trajectory American Market The US Hotel Market is on Track for 10th Consecutive Year of Growth.
OYO Trajectory American Market The US Hotel Market is on Track for 10th Consecutive Year of Growth. The Trend is Up.
OYO Trajectory Emerging-Market Unicorn Among Unicorns. 1. Supported by Major Players 2. Received Prestigious Silicon Valley Award 3. Realized Aggressive Growth Targets Early-On 4. 6th Largest Worldwide Hotel Chain Operator 5. Approximately Double the Size of Wyndham (#2 Player)
OYO Trajectory Emerging-Market Unicorn Among Unicorns. 1. Supported by Major Players 2. Received Prestigious Silicon Valley Award 3. Realized Aggressive Growth Targets Early-On 4. 6th Largest Worldwide Hotel Chain Operator 5. Approximately Double the Size of Wyndham (#2 Player) The Indicators Are Good Strong Potential.
OYOs Current Challenges Software Dispute (NCrypted) Bad Reviews Rumors of Faked Numbers
OYOs Current Challenges Software Dispute (Ncrypted) Bad Reviews Rumors of Faked Numbers Everyone Has Growing Pains and Naysayers.
ALTERNATIVES KIM SHEPPARD
Alternatives 1 Don t apply to OYO Hotels USA, return to banking 2 Apply for a position with an alternative tech company 3 Apply to a suitable position at OYO Hotels USA
Alternative 1: Dont apply to OYO Hotels USA return to banking Pros Cons Potential risk of OYO position No change in pay Missed opportunity in meaningful position No career shift/ further experience diversity
Alternative 2: Apply for a position with an alternative tech company Pros Cons Career shift Values alignment Missed opportunity of working with OYO startup in USA Pay uncertainty Uncertainty of long-term growth potential Waiting game time to find company/position
Alternative 3: Apply to a suitable position at OYO Hotels USA Pros Cons Career development Future outlook for OYO Hotels USA Values alignment Potential short-term pay cut
Decision Matrix Objectives Alt. 1: Don t Apply Alt. 2: Apply to other company Alt. 3: Apply to OYO Career Shift Long-term growth potential Meaningful career
Recommendation Jakayla Michel should pursue a suitable position with OYO Hotels USA
IMPLEMENTATION PLAN CHRISTINA FONG
Implementation Plan Focus Why OYO USA Values Alignment Potential Roles Why OYO
Career Decision-Making Framework Compensation & Location Value Alignment Company Growth Potential Personal Growth
Why OYO? Aggressive Growth Trajectory Emerging Market Unicorn Industry Disruptor Innovators Wealth of Knowledge Potential
Why OYO Hotels USA is Right for You Many Open Positions Near You Growth: 50 Hotels in 35 Cities in 6 Months USA Hotel Market Growing Be a Part of Establishing US Presence OYO CAN Ride the Wave.
Values Alignment with Ritesh Agarwal Passion Energy Resilience You have the ability to thrive in a high-growth, disruptive, and technology-led business that is transforming the hospitality industry.
What Role is Right for You? You are a Junior Investment Banker with 4 Years Experience. Field Sales Representative: Drive New Revenue and Identify Acquisitions. Territory Operations Manager: Challenge Existing Processes in Local Markets, Drive Occupancy, and Analyze Market Trends Business Development Manager: Drive Sales and Revenue Targets
Go For It (Fill Your Boots) Early in Career Looking for a Change Great Fit Ambitious & Goal-Oriented
FINANCIALS & RISKS EVAN FOOTE
Assumptions OYO will continue aggressive growth trajectory, with no plans to slow pace An IPO is in OYO s future Employee share ownership plan is available
Financial Analysis Funding rounds for this company were incredible $1.766 billion to date Very high chance of future financing rounds, considering aggressive growth Company funded expansion through private financing More capital required as brand grows through US and future countries $US 300 million earmarked for the US expansion
Financial Analysis - results RevPAR metric showing incredible results for the first onboarding of US hotels >4x the results growth to $50 per room There is a lag in financial results from new hotel franchises Hotels acquired from mid to end of the year will not have their financial impact shown until the following fiscal year Time gap for substantial revenue growth w/5 new US Hotel a day
Revenue $14,000.00 $12,000.00 $10,000.00 $8,000.00 $6,000.00 $4,000.00 $2,000.00 $- 2017 2018 2019 2020 2021
Revenue $14,000.00 $12,000.00 $10,000.00 $8,000.00 $6,000.00 $4,000.00 $2,000.00 $- 2017 2018 2019 2020 2021 With the ratio of loss: net realizable value expected to fall to <2% by 2021
IPO discussion Why is an IPO inevitable? Amount of funding and diversity of investors Current valuation of the company Growth trajectory of franchises/tech usages Funding eventually required from other sources Investors will one day expect their capital return
IPO continued What will this mean for you? The earlier the better more shares, more potential for share sale opportunity IPO not immediate but certainly can be expected in the short-term time horizon Potential within 2-3 years Validity the Verafin story
