The growth path of OYO, a company in China, is full of the shadow of Ruixing.
OYO, which is considered to be the hotel industry’s “Rui Xing”, this time, and Ruirui grabbed the business.
According to Sina Technology, < Strong>OYO Hotel opened its first coffee shop “Fenran Coffee” in Xi’an, officially entering the new retail of coffee. “Finan Coffee” relies on the business activity data accumulated by its hotel network to select coffee shops according to the flow conditions and hotel conditions in different regions. The coffee shop uses an automatic coffee machine, raw materials such as coffee beans are screened by OYO Hotel, and coffee production is handled by the hotel reception.
OYO Hotel believes that “Fenran Coffee” is developed and operated in the OYO Monolithic Hotel, so the initial investment and operating costs of will be lower than the same type of coffee shop. “Fenran Coffee” mainly solves the problem of low utilization rate of single hotel property, and can effectively revitalize the hotel’s idle property space and generate revenue for the owner.
Why is the first coffee shop selected in Xi’an? One signal is that OYO Hotel announced on September 9 that its 2.0 model signing hotel exceeded 3,000, and Xi’an is China’s first 2.0 model signing hotel with hundreds of broken hotels.
OYO is an Indian economic chain hotel brand established in 2013 and came to China in 2017. OYO Hotel advocates low prices and no franchise fees. When it comes to China, it will expand at the speed of “three hours a store”. According to official data, OYO has 13,000 hotels in more than 300 cities in China, with a total of 590,000 rooms. It is the largest single-brand hotel chain and the second largest hotel chain in China.
OYO’s growth path in China is full of Ruixing’s shadow. The logic of supporting the expansion regardless of cost and high investment is exactly the same as Ruisheng. Therefore, OYO is called “Rui Xing” of the hotel industry; and joined OYO in September 2018. CFO’s Li Wei, whose predecessor was also the “Shenzhou Department” with the founder of Ruixun Coffee, Qian Zhiya, served as the COO and CFO of China’s car rental. Today, OYO directly cuts into the old business of Ruixing, and wants to share the same cake with Starbucks and Ruixing.