Why Oyo Is Doubling Down on Its Company-Serviced Hotels
Photo Credit: Oyo's company-serviced Palette Palghar Irayos Resort Lifestyle Retreat. Oyo
Skift Take
India’s growing purchasing power is driving Oyo towards premiumization, but it’s doing it Oyo style.
Oyo has said it is aiming to double the share of company-serviced properties in its booking revenue from 22% to 44% in the current financial year.
The company that currently operates 1,300 hotels in its serviced segment across 124 cities also plans to expand the portfolio of these hotels to 1,800 properties across 300 cities. These are primarily under its mid-segment brands Townhouse Oak, Capital O and Palette, and premium brand Sunday.
The launch of company-serviced hotels in September 2023 marked Oyo’s departure from its franchise model.
According to Oyo, it will focus on leisure cities, pilgrimage destinations, and business corridors where demand remains strong for the expansion.
What is Driving This Decision? In its statement, the hospitality company said that these hotels have double the average occupancy as compared to franchise hotels. These properties also get a higher customer rating, it added.
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