Hospitality unicorn OYO has announced the launch of its new brand, Palette, aimed at upscale resorts and hotels catering to premium travellers. This move is part of OYO’s ongoing efforts to enhance the versatility of its premium property portfolio. The Palette resorts will be strategically located in popular leisure destinations across India, appealing to both business and leisure travellers seeking quick getaways and staycations.
OYO Premium Portfolio and Expansion Plans
Apart from the newly launched Palette, OYO’s existing premium brands include Townhouse Oak, OYO Townhouse, Collection O, and Capital O. The company has ambitious plans to expand its premium portfolio by adding 1,800 new properties by the end of 2023. Earlier this year, Inc42 reported that OYO was eyeing a significant market share in the premium hospitality segment, signaling its focus on catering to high-end travellers.
Initial Rollout and Future Growth
As part of a pilot launch, OYO has introduced ten Palette resorts in cities such as Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar, and Bengaluru. The company aims to expand this brand by adding 40 more Palette resorts to its portfolio by Q2 FY 2024. The expansion plan covers key locations such as Delhi NCR, Kolkata, Amritsar, Shimla, Goa, Udaipur, Pune, Mussoorie, Srinagar, and Kochi.
Emphasizing Unique Experiences for Travellers
Anuj Tejpal, Chief Merchant Officer at OYO, emphasized that modern travellers seek more than just a place to stay; they desire unique and memorable experiences. This change in traveller preferences, driven by rising disposable incomes, has prompted OYO to diversify its portfolio and introduce the Palette brand, targeting the premium hospitality market.
OYO Financial Performance and IPO Plans
OYO’s recent developments come as the company prepares for its public listing. The hospitality giant has experienced a positive shift in its financial performance, turning cash flow positive in the March 2023 quarter, as disclosed during a town hall meeting in April. Additionally, OYO has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential filing route, indicating the progress towards its initial public offering (IPO). These strategic moves signify OYO’s commitment to expanding its presence in the premium hospitality market and strengthening its position as a prominent player in the industry.
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