OYO Hotel Chain Reports Increase in Long-Term Stays
OYO’s long-term stay bookings climbed to 21% since stay-at-home orders began in mid-March.
Despite a drop in overall bookings throughout the hotel industry due to the COVID-19 pandemic, budget-hotel chain OYO Hotels reported a more than 20% increase in long-term stay bookings.
With long-term stays classified as more than seven days, OYO’s long-term stay bookings climbed to 21% since stay-at-home orders began in mid-March. The company has also seen a rise in demand for stays lasting a month or longer for displaced workers and medical staff.
OYO is offering discounts for senior citizens, military personnel, students, and travelers staying more than three or seven nights. OYO has also offered free accommodations to frontline workers such as doctors, nurses and medical first responders in its more than 300 US hotels.
“While the coronavirus crisis has deeply impacted our industry, it has also created the need for long term stays for the frontline workers,” said OYO Global COO and Operating Partner Abhinav Sinha in prepared remarks. Sinha also mentioned that the company has implemented enhanced protocols for cleaning and social distancing for guests at OYO hotels. The increase in bookings for long-term shows boasts positive news for the hotel industry in the midst of revenue loss across the industry.
In general, the coronavirus’ impact has hit the hotel industry hard, with travel restrictions and stay-at-home orders resulting in booking cancellations and revenue loss. Major hotel chains such as Hyatt have been forced to temporarily close hotels, adopt lax refund policies and furlough employees as a result. OYO also has had to forgo CEO salary, establish executive compensation cuts, among other cost-cutting measures, according to a video statement from OYO Chief Executive Officer Ritesh Agarwal posted on the official OYO blog.
More recently, the company has furloughed thousands of workers, according to a TechCrunch report. Headquartered in India, OYO, which stands for “On Your Own” rooms, is a relative newcomer in the hotel industry, with Ritesh Agarwal founding the company in 2013. OYO had planned to invest $300 million into a US expansion in June 2019.
The company also operates hotels in Europe, India, the Middle East, Southeast Asia, Japan and the UK.