Oyo Launches Premium Hotel Brand in Dubai for Indian Travelers

Skift Take

Oyo looks to make the most of India’s burgeoning outbound travel market, as evidenced by its recent launch of premium hotels in popular destinations for Indian tourists.

Oyo has announced the launch of its first luxury hotel, the Palette Royal Reflections Hotel and Spa, in Dubai. The opening marks a significant step in Oyo’s strategy to expand its premium offerings, driven by the increasing demand from Indian tourists for high-end accommodations in the region.

Nitin Gupta, business head of Oyo Middle East, highlighted the surge in Indian tourists seeking luxury stays in Dubai: “We have seen a significant increase in the number of Indian tourists requesting upscale accommodations. Oyo is committed to meeting the needs of these travelers visiting Dubai.”

Oyo Operations in Dubai

The introduction of the Palette Royal Reflections Hotel and Spa is part of Oyo’s broader initiative to bolster its premium property portfolio globally. Oyo boasts over 700 properties in the United Arab Emirates, with more than 200 located in Dubai. The company anticipates that its Dubai properties will attract over 100,000 Indian tourists in 2024.

Dubai is also preparing to bring in an unprecedented number of Indian visitors in 2024. In 2023, India led the ranks with 11.9 million passengers visiting Dubai. The relaxation of Dubai’s visa policies is also expected to further boost the number of Indian travelers visiting the emirate.

Dubai this year introduced a 5-year multiple entry visa for Indians.

Oyo also looks to provide comprehensive hospitality solutions to its guests – it said that the Palette Royal Reflections Hotel and Spa said would also assist guests with travel arrangements and sightseeing tours.

The Luxury Pivot

Oyo, traditionally known for its budget hotel operations, ventured into the premium segment with the launch of the Palette brand last July. Oyo piloted 10 Palette resorts in Indian cities such as Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar, and Bengaluru. This year, the company plans to expand the number of Palette hotels in India to 23.

On the international front, Oyo’s premium properties include the Palette Resort at Myrtle Beach in South Carolina, Palette Siniya Island Resorts in Umm Al Quwain, UAE, and Palette Grand Morocc in Thailand. Oyo also operates luxury hotels in India under the brand name Sunday and manages the Belvilla premium resort brand across Europe and Bali in Indonesia.

Ritesh Agarwal, CEO of Oyo, emphasized India’s critical role in the company’s upscale market strategy at the Skift India Summit. He noted that the rapidly evolving preferences of Indian consumers present a unique opportunity for growth.

“Our view is that fundamentally the same customers who are spending $30 today would like to spend $50 or $60 in some years. And the same customers who are spending $50 today would like to spend $100 or $200 in the years to come. In India, there’s an opportunity to upscale, because many of our current owners are acquiring these upmarket hotels, and our customers are eager to experience them,” Agarwal explained.

Agarwal said Oyo will capitalize on India’s rapid economic growth by expanding its premium offerings to cater to the evolving tastes of Indian travelers.

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