Hospitality unicorn Oyo targets its businesses to recover in a slow but steady manner, as demand inches back amid the ongoing pandemic.
The company is planning to take advantage of the Egyptian market for hospitality. It believes that its sanitized stays program will provide a solid edge in the region, as it already is in the UK.
Manu Midha, Oyo head of Middle East operations, said: “Given the strategic potential of the region, we are constantly on the lookout for strategically relevant opportunities to expand our footprint in the Middle East, including Egypt. However, there is nothing specific for us to comment on at this point.”
The firm is also planning to raise per-room revenues by increasing sales of food items. To meet its target of breaking even at the Ebitda level by the end of the year.
Oyo said that it will continue to invest in China. Oyo founder and chief executive Ritesh Agarwal said that China’s revenues have rebounded to about 75% of pre-covid levels, with full recovery likely by early 2021.
In May, Ritesh Agarwal had estimated that the company’s overall growth would decline this year, but it would still expand by 60% to 80%.
These events have provided cause for optimism at Oyo, which it hopes to retain even after the pandemic ends. Though demand remains low, it has set an ambitious target of achieving earnings before interest, taxes, depreciation, and amortization profitability in India by the end of December 2020.