Oyo Life, the housing rental arm of hotel chain Oyo Group, announced Thursday it is entering the student accommodation market and has partnered with Indian Institution of Technology (IIT) in Delhi and Plaksha University in Gurugram, the satellite city of India’s capital.
The Gurugram-based decacorn (a company valued at over USD 10 billion) that claims to be the world’s third largest hospitality chain, said Oyo Life will manage about 500 beds for the student community and will further ramp up its capacity to manage 100,000 beds by the end of this year.
Oyo Life is targeting professionals, millennials and new recruits who are looking for temporary as well as long-term rental accommodation. Depending on the location, facilities and the size of the rooms, the company will charge a monthly rent ranging from USD 92 to 184 per bed.
Student enrolment in India rose from 32.3 million in the academic year 2013-14, to 36.64 million in 2017-18, according to a joint report by CBRE and Student Accommodation Provider Association of India. As more students go for higher education, the demand for accommodation will go up as well. The bed to student ratio is also skewed, as the report says, on an average there is only one hostel bed available for six students in the country.
“The demand for fully furnished, fully maintained, internet-ready accommodations and innovative services have increased manifold. Oyo Life recognizes this need and provides a hassle-free fully managed service to students looking for a place to stay closer to their academic institutions,” said Rohit Kapoor, CEO, new real estate businesses at Oyo.
Launched in late 2018, Oyo Life claims to have amassed over 500 buildings, 30,000 beds, and plans to add more than 5,000 new beds every month. With presence in four cities currently, the company intends to set base in at least four more cities by the end of this year.