In financing、While rumors of listing continue，OYO Hotels announced its new 2.0 model signed hotels exceeded 3,000，And after expanding to 10,000 hotels with the "light franchise" model，The company plans to launch in 2.Complete the goal of opening 20,000 stores in total in 0 mode。

After the new goal is proposed，OYO’s capital chain is questioned again。Shi Zhenkang, partner and chief operating officer of OYO Hotels, said in an interview with a reporter from the Financial Associated Press，OYO has sufficient funds，Previous layoffs、Rumors and reports about tight financial resources are untrue。The company’s chief revenue officer Zhu Lei also revealed to reporters，OYO will soon launch a recruitment plan for 10,000 people，And launched the coffee brand "Fenran"，Enter the new coffee retail market。

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Introduction to Zhu Lei，OYO Hotel’s 2.The most important thing about the 0 mode is the income guarantee and the intelligent price adjustment system，That is, OYO provides a full-year guarantee amount for independent hotels，The excess amount will be divided between OYO and the owner in proportion。According to the owner，The share ratio is basically 50%。

"We have a profit guarantee with the owners，On this basis，There will be a dividend commission，This is our main source of profit。"Zhu Lei said，Only the owner’s business is better than before，OYO’s profits can be maximized。Introduction to the asset 188bet online sports betting operations manager responsible for OYO Quanxin store，The minimum price of this store is 400,000 yuan，It is expected that its performance will be between 450,000 and 460,000 yuan。Calculate accordingly，OYO takes a commission of about 30,000 yuan from this store。

But on the cost side，OYO will bear OTA (online travel) channel fees for this、Soft decoration renovation、A series of expenses such as marketing and publicity。The channel fee alone is 200-400 million yuan per year，In addition, a certain commission needs to be paid。at 2.In 0 mode，OYO still maintains a strategy similar to its previous one，Still launching a large number of 20 yuan、30 yuan room attracts consumption，Raising questions about burning money。

"No matter from OTA，Still APP，If you want to continue to optimize your ranking，Guaranteed to be seen by more consumers，Accumulate more popularity，Transaction volume is always a fundamental。So in the early stage，We need to pass lower prices，Improve occupancy rate、Single room revenue creates better online ranking。" Zhu Lei explained。

As for how to balance expansion speed and quality，As for how to balance expansion speed and quality。Shi Zhenkang told a reporter from the Financial Associated Press: “The most important thing at the moment is to provide value to owners，OYO is not the standard of traditional hotel chains，The focus is on consumer experience，Instead of hardware base。”

Ms. Liu, the owner of OYO, revealed to a reporter from Financial Associated Press，Our hotel only has 40 rooms，The most important reason for choosing to join OYO is that there is no upfront investment，Change door header、OYO is responsible for investing the 30,000 yuan in soft furnishings，Others do not need to be changed。ERRUJIA、The franchise fee of Hanting is basically 2,500 yuan/room，plus subsequent modification 188bet online sports betting costs，Many owners simply cannot afford it。

But Ms. Liu also admitted，Joined OYO for two months，The hotel has not completed the guaranteed amount。In other words，While the owner can get the guaranteed amount，OYO also bears the risk of failing to achieve guaranteed performance。This also makes 2.The 0 model becomes OYO’s way of attracting a large number of owners，But it also bears the double-edged sword of risk of failure。

Mismatch between demand growth and market growth

OYO’s rapid iterative expansion in China，In fact, it is a microcosm of its presence in the global market。Currently，OYO Hotels from India has quickly spread across Asia、Europe、Opening in North America and other places，Repeatedly exposed listing rumors。Behind this，It’s SoftBank、Multiple capital injections from investment institutions such as Sequoia。August 26，Interface News reported，OYO China is raising funds independently，The amount is US$300 million。

Shi Zhenkang did not directly respond to the news of financing and listing，Indicate only，OYO China is in competition with other countries，But the capital chain is intact。OYO’s success relies on “business model + funding + team”，Funding is a very important link，There is no such thing as layoffs due to financial constraints as reported previously。

An industry insider who did not want to be named told reporters，OYO China’s independent financing does not mean to be listed independently，China is the company’s most important market，is an important part of improving its valuation。Based on the current size of OYO in the world，It is not difficult to list on the US stock market。

2017，After OYO enters the Chinese market，The financing process is obviously accelerating，SoftBank has led multiple rounds of financing，Greenoaks 188bet online sports betting Capital、Sequoia Capital、Huazhu Group has also appeared on the list of investors。Financial Associated Press reporter statistics found，OYO Global and OYO China have completed 10 rounds of officially announced financing。

The reason behind the popularity of capital，It is a huge independent hotel under OYO。Shi Zhenkang revealed，The current number of stores has reached 15,000，In order to increase the floor efficiency，OYO will launch the “Fenran” coffee brand in the near future。

Zhu Lei’s introduction，“Fenran Coffee” will rely on the business activity data accumulated by its hotel network，Select the location of the coffee shop based on the flow of people and hotel conditions in different areas。Coffee shop adopts automatic coffee machine，Coffee beans and other raw materials are selected by OYO hotels，Coffee making is the responsibility of the hotel front desk。

And in the coffee retail market，The competition is far more intense than the independent hotel market where OYO is located。In addition to Luckin Coffee, which is already listed on the US stock market，Sinopec also recently announced that its retail business unit Yijie will join forces with Lian Coffee，Released the new brand "Easy Coffee"。

Shi Zhenkang attributes OYO’s coffee advantage to the existing hotel size，He thinks，Can rely on existing hotels，Reduce costs。This model is similar to Easy Coffee launched by Sinopec，They are all diversifying coffee consumption scenarios。

"Pricing of Fenran Coffee、logo、The specific cooperative store has not yet been determined，At present, only the first cloud kitchen has settled in Xi’an。"Shi Zhenkang said。

“Coffee retail is a sideline business for OYO，The main purpose is to increase the floor efficiency。" Yuan Xueya, a management consultant at Xingshuo Hotel, told 188bet sports betting app download a reporter from the Associated Press，OYO’s main market is in fourth- and fifth-tier cities，This market is not sensitive to coffee retail，The most obvious problem is the profitability of mid- to low-end independent hotels。

In fact，As OYO enters the Chinese market with high hopes，The number of mid- to low-end hotels has also begun to buck the trend and grow。H chain hotel invested by Huazhu、OYU from Tongcheng Yilong、Meituan’s Qingzhu have entered this market，Become a competitor with OYO。

“Supply in the mid- to low-end hotel market is increasing，But demand growth cannot keep up with supply growth，So the key is to gain a larger market share in a limited market，This is competition in the stock market。" Zhao Huanyan, senior economist at Huamei Consulting Agency, believes。

Dongxing Securities proposed in a research report in July this year，Low occupancy rate puts pressure on OYO hotel performance，Profitability remains the main problem。Facing the future，OYO finally has to make a choice: become a bigger platform and face OTA competition，Or strengthen hotel management capabilities and deepen the hotel market。

*Source of this article: Financial Associated Press, authorWho:Li Danyu, original title: "OYO Hotels continues to fight high, and the profit problems of mid- and low-end independent hotels need to be solved》