New Delhi, October 9: Hotel chain Oyo Rooms, the latest one to enter the Unicorn Club in India with $1 billion fundraise, is all set to launch its operation in Japan as it eyes a prominent market share in Japan’s budget hotel market ahead of the 2020 Olympic Games, according to a Mint report. This news comes after the hotel announced its foray into the UK market. OYO Hotels to Invest Rs 500 Crore in Uttarakhand to Build Hospitality Ecosystem.
Japan is a home market for Oyo's largest investor SoftBank. The recent round of investment from Softbank will be partly dedicated to Oyo's aspiration in Japan. Earlier this year, Oyo raised $800 million from Japan’s SoftBank Vision Fund and other investors, raising the company's valuation to $4 billion.
Oyo recently announced its presence in 26 Chinese cities, including Hangzhou, Xian and Guangzhou. The company is entering the Chinese market two years before the Olympics 2020, that is scheduled to take place in Tokyo. The company plans to cash into the tourism ahead of the Olympics. However, ccording to a TechPluto report, it is not going to be an easy ride for the company as the Japanese market is overcrowded with competitors, and also a tremendous oversupply of hotel rooms.