OYO checks into serviced apartments
SoftBank-backed budget hospitality firm OYO has forayed into the relatively untapped segment of serviced apartments. Branded as OYO SilverKey, these are aimed at corporate clients.
Last month, it acquired Novascotia Boutique Homes, a Chennai-based service apartment company. The latter’s 350 furnished accommodations are being re-branded as SilverKey. The apartments are spread across five cities, including Chennai and Hyderabad. Ritesh Agarwal, founder and chief executive officer (CEO) at OYO, said it already had a large base of corporate clients.
“A large number of our corporate guests stay for long periods, depending on their projects. Conventional hotels are good for short stays. Those coming for longer stay look for a bit of home comfort and some common space,” he said.
OYO counts Reliance Industries, ITC, Godrej, Dabur, E&Y and PricewaterhouseCoopers in its list of 5,000-plus corporate clients using OYO B (its corporate booking solution). Agarwal said there would be a cluster of 30-40 of one-BHK serviced apartments in one building, located in a city’s residential areas, not far from corporate offices. The company had no immediate plan to dilute equity further for funds, he added.
OYO raised $250 million last September from investors, including SoftBank, and plans to spread SilverKey network to 12 cities by the end of 2018.
It will soon set its foot in Delhi, Gurgaon, Noida, Mumbai, Pune, Bengaluru and Kolkata. Agarwal said SilverKey currently had 18 active clients, including TCS and Cognizant. The charge will range between ~1,600 and ~3,000 a night, with complimentary breakfast in the package.
The company said its focus would be on ensuring safety and security of clients. Exmilitary and police personnel would be on patrol, roundthe-clock.
The company will be taking apartments on lease from builders who own a number of apartments in a building. Alternately, it will have a builder aggregate apartment owners for the purpose.