Budget Hotels Head for a Big Moment
Photo Credit: Oyo Life, Japan. Oyo founder Ritesh Agarwal keeps out acquisition chatter, saying his focus is to create better living spaces. Oyo Hotels & Homes
Skift Take
Whether or not Accor will acquire or invest in Oyo, the point is this sector has come a very long way and is heading toward a big moment, born from a college dropout's entrepreneurial dream in India. The whole travel industry should welcome this.
Five years ago it would have been unthinkable for a global hotel chain to even cast a glance at the budget accommodations sector, which is characterized by stand-alone independent hotels with 20 to 50 rooms selling at rates that can’t even buy a decent breakfast.
Today that could be a reality spreading across Asia, and no one should be surprised — after all, who would have thought that Airbnb would buy HotelTonight or Accor would buy fine homestays, restaurant reservations, and concierge services? Moreover, with technology, new players such as Oyo have been able to template the modern budget hotel to a tee, removing the stigma that dirt-cheap equals dirty and cheap. Just as low-cost carriers have enabled everyone to f