IPO-Bound OYO Strengthens Its Premium Play, Launches New Brand ‘Palette’

Hospitality unicorn OYO on Tuesday (July 18) said it has launched a new brand, Palette, for upscale resorts and hotels to target premium travellers.

OYO said the launch of the new brand is part of the unicorn’s ongoing efforts to make its premium property portfolio more versatile. Palette resorts will be located in popular leisure destinations across India, while also catering to business leisure or leisure travellers looking for quick getaways and staycations, OYO said in a statement.

Townhouse Oak, OYO Townhouse, Collection O, and Capital O are the other premium brands in OYO’s portfolio. The company plans to add 1,800 new properties to its premium portfolio by the end of 2023.

Earlier this year, Inc42 reported that the SoftBank-backed startup has set its eye on the premium hotel segment and is eyeing a significant market share in the premium hospitality market.

In the statement, OYO said it has launched 10 Palette resorts as a pilot in cities like Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar and Bengaluru. The company plans to add 40 more Palette resorts to its portfolio by Q2 FY 2024.

The expansion will include Delhi NCR, Kolkata, Amritsar, Shimla, Goa, Udaipur, Pune, Mussoorie, Srinagar and Kochi.

“Today, travellers are seeking more than just a place to stay; they are craving unique and memorable experiences. This paradigm shift, fuelled by rising disposable incomes, has prompted us (to) diversify our portfolio and introduce (the) Palette brand,” Anuj Tejpal, chief merchant officer at OYO, said.

Earlier this month, the Ritesh Agarwal-led startup also announced that it would add 500 new hotels in the host cities of the upcoming men’s cricket World Cup in India.

The developments come at a time when OYO is gearing up to become a public company and has also seen a turnaround in its financial performance. 

In a town hall meeting in April, OYO told employees it turned cash flow positive in the March 2023 quarter.

Meanwhile, it also refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) via confidential filing route.