OYO said that the new hotels will be strategically located near the stadiums and will be added over the next three months to meet the anticipated increase in booking demand
OYO said it is already witnessing a significant surge in demand for the duration of the tournament, which will be held in India from October 5 to November 19
The announcement comes at a time when the company has seen a turn around in its financial performance and is gearing up to go public
IPO-bound hospitality major on Friday (July 7) said it will add 500 new hotels in the host cities for the upcoming cricket World Cup, scheduled to be held in India from October 5 to November 19.
Hyderabad, Delhi, Dharamsala, Chennai, Lucknow, Bengaluru, Mumbai, Kolkata, Pune and Ahmedabad will host the World Cup matches. In a statement, OYO said that the new hotels will be strategically located near the stadiums and will be added over the next three months to meet the anticipated increase in booking demand.
The much-anticipated tournament in the cricket-crazy country is expected to lead to a sharp rise in demand for hotels and OYO is looking to cash in on this demand.
OYO said it is already witnessing a significant surge in demand for the duration of the tournament.
“Travel demand automatically goes up whenever the dates for a marquee cricket tournament are announced – such is the magic and power of this sport that binds millions together. We want to ensure that everyone who is traveling from far away to watch their favorite teams has access to comfortable and affordable accommodation,” the company said.
The announcement comes at a time when the company has seen a turn around in its financial performance and is gearing up to go public.
In a town hall meeting earlier this year, the hospitality unicorn told its employees that it turned cash flow positive in the quarter ended March 2023. The startup said it was likely to end the quarter with a surplus cash flow of INR 90 Cr, Inc42 reported.
In May, ratings agency Fitch upgraded its rating on OYO and said it believes the company is on track to generate positive EBITDA and cash flow from operations sustainably. Moody’s also said that it expects OYO to continue its positive EBITDA trajectory in FY24.
Meanwhile, after multiple delays, OYO filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential filing route. It also cut the issue size to $400-$600 Mn.
OYO, which is one of the best placed players in the hospitality sector, is also looking at expanding in the premium hotel segment. India’s hotel booking segment is expected to reach a size of $7.6 Bn by 2023-end.
