Go OYO or not? XMU CONSULTANCY TEAM Susan, George,
Description: Go OYO or not? XMU CONSULTANCY TEAM Susan, George, alex, phil Key Issues Shall Michel Apply a Joy in OYO? Can OYO reach succeed in USA? Challenge 1: Low market share Challenge 2: High cost Challenge 3: Capital demand (Big Initial
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slide1. Go OYO or not? XMU CONSULTANCY TEAM
Susan, George, alex, phil<br>
slide2. Key Issues Shall Michel Apply a Joy in OYO?
Can OYO reach succeed in USA?
Challenge 1: Low market share
Challenge 2: High cost
Challenge 3: Capital demand (Big Initial investment)<br>
slide3. Solution Solve the long term problem Cost reduction
Revenue increasing Win-Win for stake holders, Owner, customers, OYO, new partners! For Michel, You can apply position with OYO, suggest BDM!<br>
slide4. Agenda<br>
slide5. Analysis--Market Global stay room nights continuosly increase.
Main increase place China.<br>
slide6. Analysis- corporate performance Realised value and the revenue is sharply increasing
The losses of realised % is decreasing from 44.5% to 10.4%<br>
slide7. Analysis--Profile<br>
slide8. Analysis Industry
Key sepciality, Price and Occupancy—keep price 10percent lower, increase the occupancy three times, return still roughly 2.8times.
Market Growth---i.e. US hotel market 10th consecutive year growth
Market
India---largest branded network of budget hotel, commission 22%;
India---173,000rooms in 259 India cities
China---in less than2years, become largest hotel group in China,
China-- by expending to 450,000rooms and 320 cities, most of Tier ii to tier VI
US—21% non branded hotel market
1. Others---Like British and Japan<br>
slide9. Analysis—Business Model Hotel OYO Customer Operation
Brand
Renovation
Customer Low price
Standard and good service Room Book platform
Revenue<br>
slide10. Analysis—US Cost and Income Structure<br>
slide11. Analysis—Strength and Weakness<br>
slide12. Alternatives<br>
slide13. Evaluation on Alternatives Reposition to target High-End customer to increase Revenue Non-go option!<br>
slide14. Evaluation on Alternatives Merge & Acquisition We are shortage of capital already!!
Non-go option!<br>
slide15. Evaluation on Alternatives Seeking partner to launch JV Financial partners A go option!
But the partner to be evaluated!<br>
slide16. Evaluation on Alternatives Long-term benefits while no dramatical investment is required
A go option!!!
But not enough! Fully usage of big data to optimize operation manage<br>
slide17. Recommendation Solve the long term problem Cost reduction & Revenue increasing Win-Win for stake holders, Owner, customers, OYO, new partners!<br>
slide18. Implementation—Financial JV<br>
slide19. Implementation—Financial JV<br>
slide20. Implementation—Big data improvement<br>
slide21. Implementation—Big data improvement<br>
slide22. Implementation—Job issue of Michel<br>
slide23. Implementation—Job issue of Michel<br>
slide24. Time Mapping<br>
slide25. Financial Funding history Increasing expanding in the world,especially in China need a lot of Capex
Without the profit from key business, need the cash flow from financing
Turn the operational Cash flow need on the considering<br>
slide26. Financial break even test Breakeven point
=10000000/(80*0.7-16)
=250000rooms
=1667hotels Now we have 50hotels almost 750rooms
Need another 1617 hotels and 249250rooms<br>
slide27. Funding choice According the build Capex for renovation about US$200000,we need US$323.4M
Add the Big Data research Base in America spending 10M Build the JV with the partners who have the financial license operating the loan business, with the 51% equity holding.
So which we need is working capital and Capex 174.9M Financing by IPO 200M to supply the business operating and the cash flow<br>
slide28. Time Mapping<br>
slide29. Risk and Mitigation<br>
slide30. Conclusion Solve the long term problem Cost reduction
Revenue increasing Win-Win for stake holders, Owner, customers, OYO, new partners! For Michel, You can apply position with OYO, suggest BDM!<br>
slide31. Thank you!<br>
Susan, George, alex, phil<br>
slide2. Key Issues Shall Michel Apply a Joy in OYO?
Can OYO reach succeed in USA?
Challenge 1: Low market share
Challenge 2: High cost
Challenge 3: Capital demand (Big Initial investment)<br>
slide3. Solution Solve the long term problem Cost reduction
Revenue increasing Win-Win for stake holders, Owner, customers, OYO, new partners! For Michel, You can apply position with OYO, suggest BDM!<br>
slide4. Agenda<br>
slide5. Analysis--Market Global stay room nights continuosly increase.
Main increase place China.<br>
slide6. Analysis- corporate performance Realised value and the revenue is sharply increasing
The losses of realised % is decreasing from 44.5% to 10.4%<br>
slide7. Analysis--Profile<br>
slide8. Analysis Industry
Key sepciality, Price and Occupancy—keep price 10percent lower, increase the occupancy three times, return still roughly 2.8times.
Market Growth---i.e. US hotel market 10th consecutive year growth
Market
India---largest branded network of budget hotel, commission 22%;
India---173,000rooms in 259 India cities
China---in less than2years, become largest hotel group in China,
China-- by expending to 450,000rooms and 320 cities, most of Tier ii to tier VI
US—21% non branded hotel market
1. Others---Like British and Japan<br>
slide9. Analysis—Business Model Hotel OYO Customer Operation
Brand
Renovation
Customer Low price
Standard and good service Room Book platform
Revenue<br>
slide10. Analysis—US Cost and Income Structure<br>
slide11. Analysis—Strength and Weakness<br>
slide12. Alternatives<br>
slide13. Evaluation on Alternatives Reposition to target High-End customer to increase Revenue Non-go option!<br>
slide14. Evaluation on Alternatives Merge & Acquisition We are shortage of capital already!!
Non-go option!<br>
slide15. Evaluation on Alternatives Seeking partner to launch JV Financial partners A go option!
But the partner to be evaluated!<br>
slide16. Evaluation on Alternatives Long-term benefits while no dramatical investment is required
A go option!!!
But not enough! Fully usage of big data to optimize operation manage<br>
slide17. Recommendation Solve the long term problem Cost reduction & Revenue increasing Win-Win for stake holders, Owner, customers, OYO, new partners!<br>
slide18. Implementation—Financial JV<br>
slide19. Implementation—Financial JV<br>
slide20. Implementation—Big data improvement<br>
slide21. Implementation—Big data improvement<br>
slide22. Implementation—Job issue of Michel<br>
slide23. Implementation—Job issue of Michel<br>
slide24. Time Mapping<br>
slide25. Financial Funding history Increasing expanding in the world,especially in China need a lot of Capex
Without the profit from key business, need the cash flow from financing
Turn the operational Cash flow need on the considering<br>
slide26. Financial break even test Breakeven point
=10000000/(80*0.7-16)
=250000rooms
=1667hotels Now we have 50hotels almost 750rooms
Need another 1617 hotels and 249250rooms<br>
slide27. Funding choice According the build Capex for renovation about US$200000,we need US$323.4M
Add the Big Data research Base in America spending 10M Build the JV with the partners who have the financial license operating the loan business, with the 51% equity holding.
So which we need is working capital and Capex 174.9M Financing by IPO 200M to supply the business operating and the cash flow<br>
slide28. Time Mapping<br>
slide29. Risk and Mitigation<br>
slide30. Conclusion Solve the long term problem Cost reduction
Revenue increasing Win-Win for stake holders, Owner, customers, OYO, new partners! For Michel, You can apply position with OYO, suggest BDM!<br>
slide31. Thank you!<br>