Hospitality firm OYO
on Wednesday said China Lodging Group
has signed an agreement to invest $10 million (over Rs 63 crore) as equity in the company.
As per the Memorandum of Understanding (MoU), a partnership will combine the technical strengths and operational expertise of OYO
with China Lodging Group's extensive coverage and strong development capability in China, OYO
said in a statement.
Commenting on the pact, OYO
founder & CEO Ritesh Agarwal
said: "We are very excited about this partnership - both in terms of potential opportunities and existing synergies through our complementary strengths and capabilities."
signifies the shared aspirations of China Lodging Group
to explore growth opportunities in the global hospitality industry and to create synergies by working together," China Lodging Group
CEO Jenny Zhang said.
Under the terms of the pact, China Lodging Group
will explore initiating knowledge and technology sharing projects of mutual interest to enable a co-learning opportunity in the fields of technology and hospitality among other things, the statement said.
This could include an exchange programme for employees, sharing of technology and intellectual property, it added.
"The partnership is also expected to leverage benefits from economies of scale, not limited to, sourcing and procurement and joint loyalty programmes", the statement said.
currently operates in over 230 cities across India, Malaysia and Nepal. China Lodging Group
Ltd is a leading hotel operator and franchisor in China.