SoftBank-backed OYO Hotels and Homes’ internal projections showed it may not make a profit in India and China until 2022, even as the India-based hotel chain revealed a six-fold rise in losses during fiscal year 2019.
The losses highlight rapid expansion by OYO into China, the United States, the United Kingdom and other markets, which has made the six-year-old startup one of the world’s biggest hospitality brands by room count.
A valuation report filed with local regulators showed “management certified” financial projections for each of OYO’s markets including its mainstay India and China units.
Overall, OYO reported a net loss of 23.85 billion rupees ($332 million) in the year to March 2019, compared with a loss of 3.6 billion rupees a year earlier, according to the valuation report filed with India’s ministry of corporate affairs. Revenue from operations surged to 64.57 billion rupees ($900 million) from about 14.13 billion rupees a year earlier.
OYO’s China unit could post a $394.9 million profit in 2022, which could then grow to $1.65 billion by 2024, the projections showed, implying a four-fold jump in net profit in two years.
Read original article