Published on : Tuesday, April 9, 2019
India’s hotel industry giant Oyo Hotels & Homes has expanded into Japan through a joint venture with Tokyo-based SoftBank Corp. and SoftBank Vision Fund. Oyo Hotels & Homes Japan will be led by Prasun Choudhary as the operating partner, an Oyo Hotels & Homes founding member who has launched a number of global Oyo businesses.
Ken Miyauchi, president/CEO of SoftBank Corp said that given their shared vision for a digital future, they are excited to support a Vision Fund portfolio company in deploying cutting-edge technologies and services to Japan. Combining Oyo’s most advanced business model with SoftBank Corp.’s knowledge of the Japanese market, they will provide brand-new hotel experience to travelers in Japan They are sure that Oyo Hotel Japan will contribute to the revitalization of the travel market, including inbound tourism and regional revitalization in Japan.
Ritesh Agarwal, group CEO/founder, Oyo Hotels & Homes said that Japan is fast emerging as one of the most popular tourist destinations in Asia. While the terms of the latest joint venture were not disclosed, sources told local paper Economic Times that OYO will have a 50-percent stake in Oyo Hotels Japan GK, while SoftBank Corp. and its $100-billion Vision Fund will each hold a 25-percent stake in the venture.
Oyo already raised $1 billion in a round led by Softbank Investment Advisors in September.
Just as Oyo Hotels Japan was announced, Oyo partnered with Yahoo Japan Corp. to form the Oyo Technology & Hospitality Co. joint venture and bring its Oyo Life furnished apartment rental program to the country. The partnership went live with more than 1,000 rooms spread across 20 ku (special zones) in Tokyo.
According to a SoftBank Corp. statement, Oyo received more than 11,000 pre-registrations within days of the service’s launch. The company aims to solve challenges involved in apartment rentals across Japan, where renting traditionally requires a security deposit, non-refundable key money as well as introduction fee for real estate agents, making it hard for people on their first jobs to secure a rental.
Oyo is launching two solutions to help ameliorate these challenges within the market. The Oyo Passport program is a subscription-based membership program that will be available to Oyo Life residents. The passport will help subscribers take advantage of benefits from a list of companies that are part of the Sharing Economy Association of Japan (SEAJ).
Oyo Partner Real Estate Stores, meanwhile, will help real estate professionals take advantage of the internet economy. Member stores will offer opportunities for people to drive awareness of available Oyo Life buildings and generate supply as well as demand, while simultaneously encouraging more people to open more stores where people can find information on properties to rent. Oyo Partner Real Estate currently has more than 30 stores in Tokyo, including areas such as Roppongi and Azabu-Juban.
Oyo Life also is integrating with the Yahoo! Japan search engine, homepage, travel and real estate portal.