After China foray, OYO looks to check in to Japan
Hospitality company OYO is priming itself to enter Japan, the world’s third-largest economy, barely a few weeks after the Gurgaonbased company raised $800 million in its latest round of funding that was led by SoftBank’s Vision Fund.
The company, which was valued at $5 billion post its latest round of equity financing, is piloting a couple of properties in the capital city of Tokyo, with a formal entry expected to take place over the next three to six months, according to sources aware of the developments.
The move also comes less than year after the Ritesh Agarwal-led company entered China in December last year, a geography that it has identified as a core market, along side its home market, India.
The decision to enter the Japanese market has also been driven by the anticipated growth in the country’s hospitality sector, which is expected to witness a significant uptick over the next two years, given its capital city, Tokyo, is scheduled to host the 2020 Summer Olympic Games. According to a report by global real estate-focused consultancy Jones Lang La-Salle, in Japan, accommodation accounts for on average 28% of tourist spend, second only to shopping.