OYO plans to double premium hotels in 2023 as biz travel surges
OYO’s focus on premium hotels started in October-December 2022, when it added 400 such properties.
- Its premium hotel brands include Townhouse Oak,
OYO Townhouse, Collection O, and Capital O.
- It plans to expand in Bangalore, Hyderabad, Chennai, Delhi, Kolkata and Mumbai.
AdvertisementGlobal hospitality technology platform OYO said on Thursday that it plans to double the number of premium hotels in India in 2023. It intends to add around 1,800 premium hotels to its platform to “support the surge in business travel”.
Founded in 2012 as a budget hotel hospitality chain, OYO currently offers hotels, homes and living spaces. Its focus on premium hotels started in the last quarter of 2022, as it added over 400 new 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,” said Anuj Tejpal, chief merchant officer, OYO.
For the expansion of premium hotels, OYO will focus on Bangalore, Hyderabad, Chennai, Delhi, Noida, Kolkata and Mumbai. Its premium hotel brands include Townhouse Oak, OYO Townhouse, Collection O, and Capital O.
OYO says that the increase in demand for premium segment hotels can be attributed to 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 (FTAs).
As per a report by credit rating agency ICRA, pan-India premium hotel occupancy is expected to be anywhere between 68-70% in FY23. The service industry is anticipated to lead the demand for business travel in the first quarter of 2023.
“While traditional business travel is a strong growth opportunity, alternative business travel adds an additional layer of growth in 2023. Bleisure travel, extending work trips for leisure, and flexcations, combining remote work with leisure travel are upcoming trends which are likely to shape the growth,” added OYO.
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