Insights on OYO Hotels: Strategies for Success

Explore the journey and strategic direction of OYO Hotels through agenda analysis, internal assessments, challenges, and recommendations for business development. Discover how OYO scales its business model, focuses on profitability, and aims for long-term career potential. Should you apply for a job at OYO? Delve into the structured approach to growth, market analysis, and implementation strategies.

• OYO Hotels
• Business Development
• Strategic Analysis
• Career Growth
• Market Expansion

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1. OYO Hotels OYO Hotels Stepping Stones to a Successful Career SMURFIT CONSULTING FIONA LEAVY JITESH GOYAL MARK NOONAN AISLING MURPHY

2. Should you apply for a job at OYO? CHALLENGE

3. APPLY FOR A ROLE IN OYO RECOMMENDATIONS APPLY FOR THE BUSINESS DEVELOPMENT MANAGER ROLE Should you apply for a job at OYO? DEVELOP CAPABILITES IN OYO FOR LONG TERM CAREER POTENTIAL

4. AGENDA ANALYSIS IMPLEMENTATION RECOMMENDATIONS JITESH MARK AISLING

5. INTERNAL ANALYSIS STRUCTURED APPROACH TO GROWTH Where do we play Emerging Markets Developed markets ARENAS What s our pace Rapid Expansion How do we play ECONOMIC LOGIC SPEED VEHICLES Franchise model How do we make profit DIFFERENT IATORS How do we win Balance between price and occupancy Optimize costs Premium segment Price Brand Technology (App) ANALYSIS IMPLEMENTATION RECOMMENDATIONS

6. INTERNAL ANALYSIS INITIAL FOCUS ON SIMILAR MARKETS TO BUILD A STRONG FOUNDATION India Developed Markets Other Asian Markets (2016) (2012) (2018) - Focus on developed markets - Growing at 500 hotels and 60k rooms - 4% of the market - Premium brands - Similar markets to grow - Full franchise model - Brand Enhancement - Higher share of revenue - OYOKEEP, ORBIS - Launched as Oravel stays - Re-branded to OYO - Developed capabilities and brand ANALYSIS IMPLEMENTATION RECOMMENDATIONS

7. CHALLENGE HOW DOES OYO SCALE ITS BUSINESS MODEL Achieving Profitability Hotels at cheaper rates Competition Business model in US Franchise model Potential in Developed markets Growth Strategy US strategy vs Global strategy Focus markets ANALYSIS IMPLEMENTATION RECOMMENDATIONS

8. IMPLEMENTATION (1) - ACHIEVING PROFITABILITY OYO can achieve profitability by 2021 WHAT Leveraging Economies of scale in technology to reduce costs Revenue increasing due to brand recognition and growth WHY Reduction in necessity to use Booking.com, Expedia etc. Adding value to franchise partners Developing into new segments OYO Townhouse, OYO Life HOW ANALYSIS IMPLEMENTATION RECOMMENDATIONS

9. FINANCIAL ANALYSIS ACHIEVING PROFITABILITY OYO will achieve Breakeven profitability by 2020/2021 ANALYSIS IMPLEMENTATION RECOMMENDATIONS

10. FINANCIAL ANALYSIS MARKET SHARE GROWTH Market Share growth from 0.5% to 1.5% IPO Valuation in 2022/23 Potential INR 15x Profit = Indian Rupees 37,200 crore ANALYSIS IMPLEMENTATION RECOMMENDATIONS

11. IMPLEMENTATION (2) THE BUSINESS MODEL IS TRANSFERRABLE TO THE USA Can OYO successfully transfer their business model to the USA WHAT Growth rates in the hotel industry in US are strong Number of unbranded hotel chains that can be converted there History OYO Inn Dallas South occupancy 24% - 92% from increase and Rev increase 4x WHY Marketing of brand across key cities within the USA Using dynamic pricing in their algorithm Key City attack plan for opening Las Vegas, Dallas, LA; Transform small Branded hotel owners to OYO over time HOW ANALYSIS IMPLEMENTATION RECOMMENDATIONS

12. IMPLEMENTATION (3) INITIAL FOCUS ON BUDGET THEN ADD ADDITIONAL SEGMENTS IN THE USA OYO can add additional segments over time such as premium WHAT Broaden scope to add new revenue drivers Increase willingness to pay and price points WHY Initial brand name will have a presence Strong Business development teams in place Many branded hotel operators have a mix of segmented hotels such as Marriott, Hilton, Travel Lodge HOW ANALYSIS IMPLEMENTATION RECOMMENDATIONS

13. KEY PERFORMANCE INDICATORS PERFORMANCE INDICATOR MEASUR E 80%+ Occupancy rates % of Realised Value > 30% Number of new rooms franchised > 20% Customer satisfaction Surveys Number of Franchise Audits 10% p.a ANALYSIS IMPLEMENTATION RECOMMENDATIONS

14. RISKS AND CONTINGENCIES RISKS CONTINGENCIES Profit - Focusing on profitability may lead to a reduction in quality - Clear SOPs for franchisees and a vetting process Business Model - OYO Brand not accepted in the US - Strong marketing campaign in US to develop the brand and its benefits Growth Strategy - The scale predictions in the US are not met - OYO will continue to target other markets (for example in Asia) ANALYSIS IMPLEMENTATION RECOMMENDATIONS

15. RECOMMENDATION (1) APPLY FOR A ROLE IN OYO OYO Potential Profitable by 2020/2021 Strategy, Challenges, Prospects, Sustainability Key Questions US Market Potential Career Shift and growth opportunities ANALYSIS IMPLEMENTATION RECOMMENDATIONS

16. RECOMMENDATION (2) WHICH ROLE TO APPLY FOR? Capabilities Career Shift Growth Potential Decision OYA Roles HR Director, Dallas Field Sales Representative Business Development Manager Territory Operations Leader Other Roles Investment Banker Tech IT Start Up Role ANALYSIS IMPLEMENTATION RECOMMENDATIONS

17. RECOMMENDATION (2) APPLY FOR THE BUSINESS DEVELOPMENT MANAGER ROLE Developed in your career to date Financial Skillset MBA organization, time management, written skills Capabilities Growth plan in US that this role has the opportunity to shape Business Development of OYO

18. RECOMMENDATION (3) DEVELOP CAPABILITES IN OYO FOR LONG TERM CAREER POTENTIAL Business Development Role Develop your skills New capabilities Different Roles Different Markets Long Term Career Development Opportunity

19. APPLY FOR A ROLE IN OYO RECOMMENDATIONS APPLY FOR THE BUSINESS DEVELOPMENT MANAGER ROLE Should you apply for a job at OYO? DEVELOP CAPABILITES IN OYO FOR LONG TERM CAREER POTENTIAL

20. OYO Hotels OYO Hotels Stepping Stones to a Successful Career SMURFIT CONSULTING FIONA LEAVY JITESH GOYAL MARK NOONAN AISLING MURPHY