SoftBank’s Oyo projects losses in India, China until 2022: report
SoftBank-backed Oyo Hotels and Homes’ internal projections showed it may not make a profit in India and China until 2022, even as the India-based hotel chain revealed a six-fold rise in losses during fiscal year 2019.
The losses highlight rapid expansion by Oyo into China, the United States, the United Kingdom and other markets, which has made the six-yearold startup one of the world’s biggest hospitality brands by room count. A valuation report filed with local regulators showed “management certified” financial projections for each of Oyo’s markets including its mainstay India and China units.
Oyo’s India business will likely make losses until 2021, after which it could report a net profit after tax of $45.2 million in 2022, which could expand by nearly 13 times to $586.9 million in two years, the projections showed. An Oyo spokeswoman had no immediate comment on the projections and it was not immediately clear when the projections were made.
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