OYO plans to add 1,800 properties by 2023, doubling the number of premium hotels in India
By expanding its presence in all the major business locations, the move aims to take advantage of the rise in business travel
21 February 2023
Through the hospitality technology platform, Oyo hopes to build 1,800 upscale hotels.
In the fourth quarter of 2022, OYO started focusing on luxury lodging when it supplied more than 400 premium lodgings between October and December.
According to a report cited by ICRA, by FY2023, the 94,000-room pan-Indian top rate stock will have increased by nearly 15,000 rooms.
The addition of around 1,800 such hotels in 2023 is a section of Oyo's aim to treble the wide variety of upscale lodges in India, which was published on Tuesday. Townhouse Oak, Oyo Townhouse, Collection O, and Capital O are some of its upscale inn names. Currently, Oyo operates 1,800 upscale lodges in India. By increasing its presence in all of the key industrial centers, the go pursuits to take benefit of the upward thrust in enterprise travel.
This year, Oyo wants to add 1,800 luxurious hotels, through the hospitality technology platform. In the previous numerous months, there has been a major increase in demand for motels in the top class. The amplify in domestic leisure travel, transient travel, pent-up demand from the meetings, incentives, and weddings segment, and the gradual recovery in corporate travel and overseas traveler arrivals might also be responsible for this.
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ICRA stated in a report that the country's inn room supply pipeline is expected to extend at a 5-year CAGR of 3.5–4%, including over 15,000 rooms to the about 94,000-room pan-India top rate stock in FY2023. According to the deposit ranking agency's study, Pan-India premium lodge occupancy is projected to be between sixty-eight and 70 percent for FY23. OYO commenced concentrating on luxury lodging in the fourth quarter of 2022 when it delivered greater than four hundred luxury accommodations between October and December.
We can without a doubt see that humans are willing to spend extra money on experiences. To enhance the journey and make it extra handy for visitors, motels are now providing greater offerings and amenities. Anuj Tejpal, Chief Merchant Officer at OYO, cited that our growth strategy, which focuses on the development of upscale hotels, is in line with this trend. In the previous few months, there has been a substantive amplification in demand for motels in the upscale class.
The amplify in domestic leisure travel, transient travel, pent-up demand from the meetings, incentives, and weddings segment, and the gradual recovery in corporate travel and foreign traveler arrivals may also be accountable for this. ICRA referred to a record that by using FY2023, the pan-Indian top rate stock of roughly 94,000 rooms will have improved by way of about 15,000 rooms, developing at a 5-year CAGR of 3.5–4%. According to the savings rating agency's research, 68-70 percent occupancy at top-rate lodges in India is expected for FY23.