OYO Announcement: last day, OYO revealed its goal to introduce 1,800 more high-end hotels to India by 2023, more than doubling the current number. Townhouse Oak, OYO Townhouse, Collection O, and Capital O are some of its upscale hotel names. Now, OYO operates 1,800 upscale hotels throughout India. By expanding its presence in all of the key commercial centres, the move aims to take advantage of the rise in business travel.
“OYO plans to add approximately 1,800 premium hotels this year,” the hospitality tech platform said. It said the expansion will focus on key business cities such as Bengaluru, Hyderabad and Chennai in South India, Delhi and Noida in North India, Kolkata in East India and Mumbai in West India. OYO’s focus on premium hotels started in the last quarter of 2022 when it added more than 400 premium hotels between October and December. “We are seeing a clear trend of people’s willingness to spend more on experiences.
Therefore, hotels are now offering additional services and amenities to enhance the travel experience and make it more convenient for guests. Our expansion plan focusing on the growth of premium hotels is aligned with this trend,” Anuj Tejpal, Chief Merchant Officer at OYO, said. The demand for premium segment hotels has picked up significantly in last few months.
This could be attributed to the surge in domestic leisure travel, transient travel, pent-up demand from meetings, incentives and weddings segment, and gradual recovery in business travel and foreign tourist arrivals. In a report, Icra said India’s hotel room supply pipeline is expected to grow at 5-year CAGR of 3.5-4 per cent, adding around 15,000 rooms to the pan-India premium inventory of about 94,000 rooms in FY2023. Pan-India premium hotel occupancy is expected to be 68-70 per cent for FY23, the credit rating agency said in the report.