NEW DELHI: Indian hotel aggregator OYO is said to be planning to acquire Chinese mid-scale hotel brand Qianyu. OYO has not officially stated anything on the matter, but insiders say talks are progressing with the Chinese competitor.
OYO already has over 3.2 lakh franchised and leased rooms across 7,000 hotels in 290 Chinese cities under the franchise, managed and leased formats. With Qianyu, the number would double to 4.5 lakh rooms. It has 1.73 lakh rooms under management in India.
Analysts point out that OYO’s expansion in China would be fraught with its own share of risks. Several global brands, including Amazon have failed to make it big in China. Amazon, for instance, has less than two percent of the market in China. Similarly, Uberhad to exit China in 2016.