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Has IPO-bound OYO regained trust of its hotel partners?

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As travel tech major OYO prepares for its much-awaited public listing, the continued satisfaction of its hotel partners and winning back dissatisfied partners will play a key role in determining how its business performs and, by extension, how its stock holds up.

The company has recently been affected by some of its hotel partners publicly complaining, filing cases and even writing to the regulator.

The moot question here is: Has IPO-bound OYO regained the trust of its hotel partners which it also addresses as Patrons?

Let’s take a closer look at its patron policies through its draft red herring prospectus (DRHP) filed with SEBI.

With over 157,000 storefronts worldwide, the 40 reported cases against the company or its directors translate to less than 0.02 per cent of its storefronts. OYO sources say that majorly of these originate due to shifting from minimum guarantee to revenue sharing arrangement. As per DRHP, at its peak, 14.7 per cent hotels had minimum guarantee. This number is down to nearly zero now.

After bingeing on growth and expansion, the company seems to have refocused its priority to course correct on the hotel partner front.

Revenue growth is by far the biggest and most meaningful value proposition that OYO claims to provide its hotel partners worldwide. Its DRHP tries to prove it by showing the median revenue growth for a storefront after 12 weeks of a hotel joining the OYO platform.

The highest revenue uplift for storefronts is in the European Vacation Homes Business at 2.4 times, while India is still at a healthy 1.9 times increase in revenue.

The platform has several revenue enhancement tools, including machine-learning based dynamic pricing algorithms which use hundreds of parameters such as the supply and demand, seasonality and local trends to arrive at the optimal real-time price for a room and thus maximising partner revenues.

Another pricing tool is the Tariff Manager, which gives partners control over pricing based on their understanding of potential local demand. Currently, 45 per cent of OYO hotels use a tariff manager on a monthly basis globally.

It has introduced a prepaid e-wallet to simplify revenue collection and reconciliation process and moved from a monthly reconciliation process to now offering hotel partners daily payouts to improve their working capital flow.

It does consistent engagement with partners now via regular town halls. All of this has led to an increase in Patron satisfaction score from 30.1 per cent for the three months ended September 30, 2020, to a healthier 72.3 per cent for the three months ended March 31, 2021.

OYO now has over 2,700 hotel partners with more than one property signed up on its platforms. For India, this translates to 9.5 per cent of the hotel owners.

New hotels are joining the OYO platform via a self-onboarding tool, ‘OYO 360′, which automatically generates digital contracts based on property details and KYC documents provided by hotel partners.

In fiscal 2021, almost all the company’s contracts with new hotel Partners were signed and managed digitally, says the DRHP.

However, OYO still hasn’t been able to assuage all of its sceptics. Some traditional hoteliers still believe that the model of offering season wise pricing with minor discounts is the only way to keep the small hotels category viable.

Few others are still to come to terms with the abolition of the minimum guarantees which gave them certainty of revenues and are still in courts demanding compensation. There are signs of thawing though; according to company sources, close to 1,300 hotel partners facing issues in the past have joined back.

Given the buoyant IPO market, OYO’s public offering may sail through successfully, but the continued partner satisfaction will have a huge impact on its growth and hence its stock performance. A point OYO’s founder Ritesh Agarwal would do well to take note of.

National

Vishy Anand puts his weight behind Gukesh ahead of high-stake Norway Chess 2025

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Mumbai, April 10: The youngest-ever world champion Gukesh Dommaraju will take on Magnus Carlsen – the world’s No. 1 player in a high-stakes contest — in the most highly-anticipated contest in the world of chess at this year’s Norway Chess 2025. The tournament will take place in Stavanger from May 26 to June 6.

Addressing an event hosted by the Norway Chess and Sports Journalists Association of Mumbai (SJAM) in Mumbai, five-time world champion Viswanathan Anand put his weight behind the prodigy from Chennai.

“I expect a very exciting battle. Gukesh will not lack motivation or the determination to go after Magnus Carlsen. But Magnus is also highly motivated by the challenge of playing against our young players. I’ve seen him in multiple tournaments whether it’s Kolkata or the World Rapid Blitz, he eagerly looks forward to these match-ups and so we have the perfect storm. I think we have the right to expect some great battles,” Anand said appearing at the event virtually.

Gukesh, 18, has achieved remarkable success in 2024, winning the Tata Steel Masters, leading India to gold at the Chess Olympiad, dominating the Candidates Tournament, and finally claiming the ultimate prize in classical chess: the World Championship title in Singapore last December.

This year’s Norway Chess will see a star-studded line-up featuring world No.1 and defending champion Magnus Carlsen (Norway), Hikaru Nakamura (USA), Gukesh D. (India), Fabiano Caruana (USA), Arjun Erigaisi (India), and Wei Yi (China) among the men.

The Norway Chess Women will feature reigning four-time Women’s World Champion Ju Wenjun (China), Lei Tingjie (China), Koneru Humpy (India), Anna Muzychuk (Ukraine), Vaishali Rameshbabu (India), and Sarasadat Khademalsharieh (Spain).

Norway Chess and Norway Chess Women, feature the same format, same prize money, and take place in the same playing hall. Both tournaments follow a 6-player double round-robin format.

From his own experience of playing at the Norway Chess, Anand highlighted the reasons behind Norway Chess being different from any other world event under FIDE’s calendar. This year, with the top 5 in the world participating in Norway Chess, the contest promises to be nail-biting for any chess aficionado following the tournament.

“It is one of the premier events in the sport of chess, and since Norway Chess began in 2013, it has kept on evolving very well. They continue to make the tournament very attractive a demonstration of what chess is all about. They always have some extra tweaks to make it very interesting, whether it’s the confessional booth or now the Armageddon. It’s a very innovative tournament, and the levels of competition are simply outstanding,” Anand said.

He further added, “And for Indian chess, the fact that we have four players, says a lot. On the men’s side, Indian chess is as strong as it’s ever been. Even more so obviously due to the depth we have. But it’s great that Koneru Humpy is still competing so successfully and that she’ll be joined by Vaishali as well, which bodes well for us.”

Visiting India to explore partnerships, Kjell Madland, the Managing Director and visionary behind Norway Chess expressed a keenness to expand further.

“Norway Chess is absolutely honoured to be hosting the Gukesh and Magnus clash, especially on the back of Gukesh’s incredible run of form. Both the champions will have a couple of chances to go after each other which bodes very well for Norway Chess,” he said.

“And hopefully, next year, Norway Chess can host this exact fixture in India as well, where there are so many champions. The quality of chess in India over the last ten years has been, and for sure, the sport would be poorer without the Indian champions,” he added.

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Crime

Four including shooter arrested in BJP leader Anil Tiger’s murder case in Ranchi

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Ranchi, April 10: The Ranchi Police have successfully solved the murder case of BJP leader Anil Mahato, also known as Anil Tiger, and have arrested four persons in connection with the case including the absconding shooter Aman, an official said. The investigation revealed that the murder was linked to a land dispute.

Ranchi DIG cum SSP Chandan Sinha held a press conference here on Thursday evening, revealing that a conspiracy to assassinate him was orchestrated by land dealer Devvrat Nath Shahdev, a resident of Kishore Ganj, Ranchi.

“Shahdev had a dispute with BJP leader Anil Tiger over the ownership of 10 acres of land in Gagi Khatanga village, under the Kanke police station area,” he said.

According to police, the investigation uncovered the involvement of seven individuals in the conspiracy — Devvrat Nath Shahdev, Abhishek Sinha, Rohit Verma, Aman Singh, Zeeshan Akhtar, Manish Chaurasia, and Ajay Kumar Rajak.

Among them, four persons — Aman Singh, Manish Chaurasia, Zeeshan Akhtar, and Ajay Kumar — have been arrested.

Anil Tiger was shot dead in broad daylight on March 26 around 4 p.m. while sitting inside a hotel at Kanke Chowk in Ranchi.

The killing sent shockwaves across the city, triggering widespread outrage. In protest, several political and social organisations called for a shutdown of Ranchi on March 27, which saw significant public response.

Following the murder, one of the two assailants, Rohit Verma, was arrested after a police encounter. However, his accomplice, Aman, had managed to flee and remained on the run for two weeks.

The Special Investigation Team (SIT), formed to probe the high-profile case, apprehended Aman with the help of the police technical cell.

Apart from Aman, two other individuals have been arrested for conducting a recce of the BJP leader and aiding the conspiracy. Raids were carried out at multiple locations to nab the suspects.

The police are also interrogating Sunny Singh, a known criminal from Kishore Ganj, Ranchi, who is currently in custody on remand.

Initially, Rohit Verma claimed during questioning that the murder was an act of revenge for the killing of criminal Santosh Jaiswal in Lohardaga district, allegedly carried out at Anil Tiger’s behest.

However, police have since found this to be a deliberate attempt to mislead the investigation.

According to the police, fresh evidence now points to a property dispute as the actual motive, with a land dealer believed to be the mastermind behind the assassination.

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Business

US major BlackRock largest investor in Adani Group’s $750 million bond issue

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New Delhi, April 10: US-based leading asset manager BlackRock is the largest investor in $750 million private bond issuance by the Indian behemoth Adani Group, informed sources said on Thursday.

According to people close to the matter, BlackRock’s move marks its first private placement in India’s infrastructure sector. BlackRock’s involvement also signals that it does not anticipate any significant operational disruptions for the conglomerate stemming from the legal proceedings in the US.

BlackRock, which oversees $12 trillion in assets globally, has apparently taken on one-third of the $750 million issuance, which carries a tenure of 3-5 years.

Apart from BlackRock, five other institutional investors also participated in the Adani Group’s latest capital raise.

As per sources, the $750 million bond issue of Renew Exim DMCC, a wholly-owned offshore entity of the Adani Group promoter family, is to be used to finance the acquisition of ITD Cementation and other growth avenues.

Aiming to bolster its engineering capabilities in the infrastructure sector, the Adani Group last year announced the purchase of a 46.64 per cent stake in ITD Cementation for Rs 5,888.57 crore from its promoters.

Renew Exim has since acquired an additional 20.81 per cent through an open offer at Rs 400 per share.

ITD Cementation, known for its work on key projects such as Jawaharlal Nehru Port Trust and ports in Tuticorin, Mundra, and Vizhinjam, is seen as a strategic asset for Adani’s long-term infrastructure ambitions.

According to BlackRock Chairman Larry Fink, “Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy”.

The Adani Group views the entry of the world’s largest investor as a strong vote of confidence, particularly at a time when its fundraising capabilities have been questioned due to the ongoing Department of Justice (DOJ) investigation in the US.

This marks the Adani Group’s second private dollar bond issuance. In February, the Group raised about $200 million for its Australian port operations.

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