OYO Unveils Premium Resorts Brand 'Palette' to Attract Luxury Travellers

OYO Launches Premium Resorts Brand 'Palette'

OYO, a leading player in the hospitality industry, has recently announced the launch of its premium resorts brand called 'Palette.' This new venture will cater to luxury travellers seeking unique and memorable experiences at high-end resorts and hotels in popular leisure destinations across India.

Enhancing Premium Property Portfolio with 'Palette' Resorts

The introduction of the 'Palette' brand is part of OYO's ongoing efforts to enhance the flexibility and appeal of its premium property portfolio. Targeting both business and leisure travellers, the new resorts will offer quick getaways and staycations in well-known leisure spots across the country.

Ambitious Expansion Plans for Premium Segment

OYO's premium portfolio already includes renowned brands like Townhouse Oak, OYO Townhouse, Collection O, and Capital O. With ambitious plans to expand further, the company aims to add a staggering 1,800 new properties to its premium segment by the end of 2023. Backed by SoftBank, OYO is strategically targeting the premium hotel segment to capture a significant market share in the upscale hospitality market.

Pilot Launch of 10 'Palette' Resorts

As a first step, OYO has initiated a pilot launch of 10 'Palette' resorts in key cities such as Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar, and Bengaluru.

Encouraged by the initial response, OYO plans to add 40 more 'Palette' resorts to its portfolio by the second quarter of FY 2024. The expansion will include cities like Delhi-NCR, Kolkata, Amritsar, Shimla, Goa, Udaipur, Pune, Mussoorie, Srinagar, and Kochi.

Addressing Changing Traveler Preferences

Anuj Tejpal, OYO's Chief Merchant Officer, highlighted the changing preferences of travellers, driven by increased disposable incomes. Modern travellers seek more than just accommodation; they desire unique and memorable experiences.

This shift in mindset has prompted OYO to diversify its portfolio and introduce the premium 'Palette' brand to cater to the evolving needs of luxury travellers.

OYO's Path to Going Public

The recent developments at OYO align with the company's preparations to go public. Demonstrating a turnaround in its financial performance, OYO reported positive cash flow in the quarter ending March 2023.

As part of the process to become a public company, OYO has resubmitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) through the confidential filing route, indicating its progression towards an initial public offering (IPO).

Conclusion

OYO's introduction of the 'Palette' brand reflects its commitment to providing premium experiences to luxury travellers. With ambitious expansion plans and positive financial performance, OYO is poised for growth and aims to solidify its position in the hospitality market as it progresses towards going public.