OYO Opens Luxury Hotel In Dubai To Up Its Premium Portfolio

SUMMARY

With the launch of the hotel, OYO is looking to cash in on the increase in the number of Indian tourists travelling to Dubai

The new hotel has been launched under the brand ‘Palette’ and is part of OYO’s efforts to increase the number of premium properties in its portfolio

Last month, OYO withdrew its draft red herring prospectus from SEBI and said it was close to finalising its refinancing plans for its Term Loan B

Doubling down on its premium play, hospitality major OYO has opened its first luxury hotel in Dubai under the brand ‘Palette’.

OYO is looking to cash in on the increase in the number of Indian tourists travelling to Dubai.

“India ranked top in terms of the number of passengers, with a total of 11.9 Mn visitors to Dubai in 2023, followed by Saudi Arabia with 6.7 Mn tourists and the United Kingdom with a total of 5.9 Mn tourists,” OYO said in a statement.

OYO claims to have over 700 properties in the UAE, including over 200 in Dubai. The unicorn said it expects the number of Indian tourists visiting Dubai to grow significantly in 2024 following the relaxation in the city’s visa policy.

Commenting on the opening of the hotel, OYO Middle East business head Nitin Gupta said, “The combination of rising affluence, the perception of Dubai as a luxury destination, and the desire for exclusive experiences among Indian tourists is expected to drive the demand for premium hotels in Dubai. We have been seeing a surge in the number of Indian tourists asking for luxury accommodation in the region. OYO plans to meet the requirements of tourists visiting Dubai through this initiative.”

The development is part of OYO’s efforts to increase the number of on premium properties in its portfolio. Last year, the Ritesh Agarwal-led startup launched the Palette brand for upscale resorts and hotels to target premium travellers.

Besides India, OYO has properties in the US, the UAE, and Thailand under the Palette brand. Earlier in March this year, OYO said it would open around 13 self-operated hotels by the end of this year under the Palette brand.

OYO also has luxury hotels in India under the brand ‘Sunday’. It also operates Belvilla, a premium resort hotel brand, in Europe and Bali in Indonesia.

Last month, OYO withdrew its draft red herring prospectus from SEBI, saying it was close to finalising its refinancing plans for its Term Loan B.

Earlier this year, OYO founder Agarwal claimed in a social media post that the startup recorded its first full year of profitability in the financial year 2023-24 (FY24) with a net profit of about INR 100 Cr.

Recently, the SoftBank-backed startup also received the nod of its shareholders to raise INR 416.85 Cr by issuing preference shares.