Skift India Report: Oyo Upgrades to Premium With Brand-New 'Palette'

Budget hotel operator and aggregator Oyo has forayed into the premium resorts and hotels category with the launch of its new brand, Palette. Oyo plans to have a total of 50 properties by the second quarter of 2024.

The company has started 10 Palette resorts as a pilot in Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar and Bengaluru, Oyo said in a statement.

“The expansion will encompass destinations like Delhi-NCR, Kolkata, Amritsar, Shimla, Goa, Udaipur, Pune, Mussoorie, Srinagar and Kochi,” it added.

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

Oyo aims to increase its premium hotel footprint under brands such as Townhouse Oak, Oyo Townhouse, Collection O and Capital O in 2023. The company plans to add 1,800 new properties as part of its premiumization by the end of 2023.

Last month, the company said it will add over 1,000 hotels to support over 100 first-generation hoteliers’ growth by December as part of its accelerator program. Oyo said to cater to the growing demand, it is now focusing on hoteliers planning to expand their business in top leisure travel destinations such as Shimla, Udaipur, Goa, Mysore, among others.