Airbnb is continuing its expansion into hotel territory following a large investment in Indian hotel chain OYO.
OYO was valued at US$5 billion in 2018 and has ambitions to be the world’s largest hotel group within five years.
Launching just five years ago, OYO began as a platform to book budget hotels in India, and has since grown to about 460,000 rooms across eight countries including China, Malaysia, Indonesia and the UK.
“Emerging markets like India and China are some of Airbnb’s fastest-growing, with our growth increasingly powered by tourism to and from these markets,” said Greg Greeley, president of Homes at Airbnb. “In many of these markets, OYO is empowering local hospitality entrepreneurs to provide more options to more travellers.”
Airbnb said it is also looking at listing OYO properties on its platform.
“Airbnb’s strong global footprints and access to local communities will open up new opportunities for OYO … to strengthen and grow,” Maninder Gulati, OYO’s global strategy head, said in a statement.