India’s OYO Homes & Hotels, the second-largest hospitality chain of leased and franchised hotels in the world, has officially launched OYO Life, its room rentals business, as part of the company’s latest efforts to capture the rapidly growing market of kos-kosan (rooming houses) in the fourth most-populated country in the world.
“The launch of OYO Life will be an integral part of our existing US$300 million investment in Indonesia. We want to provide long-term rooming houses that fit the needs of millennials such as university students or fresh graduate employees,” OYO Indonesia head of emerging business Eko Bramantyo said during the launch of the service in Jakarta on Oct. 9.
He said OYO Life, which currently offers 2,500 rooms in eight cities across the country, hoped to provide 10,000 rooms in over 10 cities by the end of this year.
According to him, almost all millennials lack the funds to buy apartments or houses with the salaries from their first jobs. In addition, there is also a growing trend for millennials to spend their money on experiences instead of assets.
With limited money in their hands and a growing tendency for millennials to spend more on experiences instead of properties, “we [OYO] thought it would be the right time to invest in long-term rooming houses,” Eko added.
OYO Life is said to have facilities that will meet the needs and safety requirements of students and young employees, such as Wi-Fi, television, housekeeping, CCTV cameras and 24-hour reception services.
According to real estate search engine and e-commerce platform Rumah.com’s 2019 Property Affordability Sentiment Index report for the first quarter, there are over 70 million young adults who live in rooming houses in Asia. Of the total, 23 million are from Indonesia.
“With many housing prices on the rise, most millennials take their time when purchasing a permanent place to reside and instead choose to live in rooming houses that are near their offices or campuses. With OYO Life, we are fully committed to expanding into the kos-kosan industry as much as possible,” Eko said. (bry)