Oravel Stays Private Limited, trading as OYO, India's largest hospitality company, has segmented it's India and international hotel business. Oyo, which was founded by Ritesh Agarwal in 2013, operates 450,000 rooms globally. The business of the company is now divided into two segments, the first segment will be managed by Alcott Town Planners, that will look over the business of the Indian hotels and the other will be managed by the parent company Oravel Stays which will be responsible for the work of International business and technology.
According to the company’s MCA filings, technology business has become an independent marketable product to serve various business models and has significant potential for growth in various sectors domestically and internationally. Therefore, it is said to require proper management and undivided attention of experts. Similarly, the International hotel business is said to have its own growth path and specific requirements.
“The segmentation of business will enable different business segments to grow independently with their focused vision, strategies, and operations. Along with attracting focused investors and strategic partners, and enable investors to separately hold investments which best suit their investment strategies and risk profiles,” the company filing added.
Oyo has been making a buzz in the media from past months, be it for delayed payment to hotels, strike against the company or for its declaration of 1400 crores investment. Let us see how the demerging technique works for the company.