New Delhi, 20th July 2023: OYO, the renowned hospitality company, has recently introduced its latest brand, ‘Palette,’ designed to cater to luxury travellers seeking high-end resorts and hotels. With a focus on upscale accommodations, the company aims to enrich its premium property portfolio to provide an exceptional experience to its guests. On July 18th, OYO officially announced the launch of ‘Palette,’ strategically positioning these resorts in sought-after leisure destinations across India. The move is intended to cater to both business and leisure travellers in search of convenient getaways and rejuvenating staycations.
The existing premium portfolio of OYO already encompasses various successful brands, such as Townhouse Oak, OYO Townhouse, Collection O, and Capital O. However, the company has even more ambitious expansion plans in mind. By the end of 2023, OYO aims to add an impressive 1,800 new properties to its premium segment. Focused on the upscale hospitality market, OYO, backed by SoftBank, is determined to capture a substantial market share in the premium hotel segment.
To introduce the ‘Palette’ brand, OYO has initiated a pilot launch with 10 luxurious resorts in cities like Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar, and Bengaluru. Looking forward, the company plans to further expand this venture, adding 40 more ‘Palette’ resorts to their portfolio by the second quarter of FY 2024. The upcoming expansion will cover key cities such as Delhi-NCR, Kolkata, Amritsar, Shimla, Goa, Udaipur, Pune, Mussoorie, Srinagar, and Kochi.
Anuj Tejpal, the chief merchant officer at OYO, highlighted the evolving preferences of travellers, driven by increased disposable incomes, which have led them to seek unique and memorable experiences beyond mere accommodation. Acknowledging this transformative shift in customer demands, OYO decided to broaden its portfolio and introduce the ‘Palette’ brand, catering to the discerning tastes of luxury travellers.
Furthermore, as part of its strategic growth plans, OYO, under the leadership of Ritesh Agarwal, recently announced its intentions to incorporate 500 new hotels in the host cities of the upcoming men’s cricket World Cup in India. This move is aimed at further strengthening OYO’s presence in the booming hospitality market.
These recent developments and expansions by OYO align with the company’s preparations to go public. OYO has demonstrated notable improvement in its financial performance, achieving positive cash flow in the quarter ending March 2023, as revealed during a town hall meeting in April. To take a significant step towards becoming a public company, OYO submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) through the confidential filing route, signaling its progress in preparing for an initial public offering (IPO).
