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OYO plans to double premium hotels in India in 2023

Oyo announced its plan to double the number of premium hotels in India, adding around 1,800 such hotels in 2023. The company’s premium hotel brands include Capital O, Collection O, OYO Townhouse, and Townhouse Oak.

Now, OYO operates 1,800 luxury hotels throughout India. By expanding its presence in all major business cities, 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.

The expansion will focus on key business cities, including Bengaluru, Hyderabad, and Chennai in South India, Delhi and Noida in North India, Kolkata in East India, and Mumbai in West India.

The company began focusing on premium hotels when OYO added more than 400 premium hotels between October and December 2022.

“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.

In the last few months, the demand for hotels in the premium segment has seen a noticeable rise.

The rise 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 tourist arrivals could be attributed to this.

ICRA stated in a report that the country’s pipeline of hotel rooms is expected to expand at a five-year CAGR of 3.5-4%, adding roughly 15,000 rooms to the approximately 94,000 rooms in the pan-India premium inventory in FY23.

The credit rating agency said in the report that Pan-India premium hotel occupancy is expected to be 68-70% for FY23.

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