EconPapers    
Economics at your fingertips  
 

Oyo Hotel’s Expansion Spree: Too Much, Too Fast?

Arijit Bhattacharya

Asian Journal of Management Cases, 2025, vol. 22, issue 1, 97-111

Abstract: Established in 2013, Oyo Hotels & Rooms, an Internet startup in the Indian hospitality sector, experienced an astonishing journey, culminating in a valuation of USD 5 billion by the end of 2018. The remarkable success of Oyo left many observers astounded. This meteoric rise was attributed to Oyo’s innovative business model, strategically targeting the fragmented budget segment of hotels beset by inefficiency. Oyo addressed these challenges by providing access to hotel rooms in prime locations, ensuring standardized services and offering affordability to customers. Over the years, Oyo gradually diverged from its core business as a mere aggregator of hotel rooms. It ventured into leasing hotels in the mid and premium segments, tapped into the Indian wedding segment, acquired companies and expanded its footprint into numerous foreign markets. This case aims to scrutinize whether this accelerated growth strategy could compromise the fundamental service promise of standardization. Additionally, it investigates whether the financially robust company, particularly after securing a USD 1 billion investment in September 2018, risks losing touch with reality as it becomes entangled in various controversies.

Keywords: Brand management; international marketing; services marketing (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09728201231222070 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:anjomc:v:22:y:2025:i:1:p:97-111

DOI: 10.1177/09728201231222070

Access Statistics for this article

More articles in Asian Journal of Management Cases
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2025-03-19
Handle: RePEc:sae:anjomc:v:22:y:2025:i:1:p:97-111