OYO has expanded its offerings in the past by getting into directly-managed hotels and homestays, but this will mark the company’s foray into the long stay rentals segment.
OYO will launch long stay rentals in the next couple of months. On-boarding of properties is underway and Bengaluru, Delhi and Gurgaon will be the first markets,” said a source with direct knowledge of the development. The company declined to confirm the launch.
The Ritesh Agarwal founded company yesterday announced the launch of its new business, OYO Living, which is working with independent owners and large builders to lease out properties for long-term housing needs of young professionals and students. According to BloombergQuint, this new vertical will offer fully-managed shared residential spaces, in Noida, Gurgaon, Bengaluru, and Pune to begin with.
Starting at Rs 7,999 per bed per month, each accommodation will comprise essential amenities like Wi-Fi connectivity, furnishings, television, regular housekeeping, power backup, CCTV surveillance and 24×7 maintenance.
In other words, OYO Living aims to help residents save on brokerage, lock-in periods, and the hassle of searching house helps and support services involved while moving to a new residence. It has already onboarded over 35 properties with 2,000 beds, and plans to scale it up to about 50,000 beds in the next one year across the top-10 metros.
The long stay rental business seems like a logical extension of OYO Homes. However, short stay and long stay have different complexities. OYO’s long stay rental model is similar to NestAway’s, says a person involved in the rollout who spoke on condition of anonymity. “OYO will manage the flats and houses,” said the person. In long stay rentals, OYO will have to deal with landlords and tenants, and deal with issues like security deposits and landlord-tenant disputes.
OYO is present in 230 cities in India, Nepal, and Malaysia, and covers over 70,000 rooms. The company claims a current Gross Booking Value run rate of $400 million.
Gurgaon-based Oyo, valued at $5 billion at the last round of funding, has about 213,000 hotel rooms across India, China, Malaysia, Nepal, UK, UAE and Indonesia. India has about 125,000 of these, and much of the rest is in China, where it is adding about 30,000 rooms a month. The hotel room business involves short stays of a few days. The new business will be different, as it will involve long stays.