OYO to stop investing in capex of hotels, says India CEO Rohit Kapoor

Three-pronged revamp strategy includes getting out of investing in capex of hotels, moving away from offering minimum guarantees to hotel partners and giving them flexibility to determine room tariff

Global travel tech startup Oyo Rooms is fundamentally altering its business model to prepare for a new growth phase after a tough year which saw hotels closing down due to the lockdowns induced by the Covid-19 pandemic. 
 
The three-pronged revamp strategy includes getting out of investing in capex of hotels managed by them (about 25 per cent of OYO’s India properties), moving away from offering minimum guarantees to hotel partners to a pure revenue-share model, and  giving them the flexibility to determine room tariffs, and is aiming at undertaking daily reconciliation of payments instead of twice a week.  The