OYO Foray Into Premium Resorts And Hotels Category, Launches Palette Brand
OYO announced on Tuesday thats its foray into premium resorts and hotels category with the launch of its new brand -Palette with plans to have a total of 50 properties by second quarter of FY24. The company has started 10 Palette resorts as a pilot in Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar and Bangalore. It will add 40 more Palette resorts to its portfolio by Q2 FY 2024, 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.
On the reasons behind the expansion, OYO Chief Merchant Officer Anuj Tejpal said, "Today, travellers are seeking more than just a place to stay; they are craving unique and memorable experiences. This paradigm shift, fuelled by rising disposable incomes, has prompted us to diversify our portfolio and introduce the Palette brand." He further said the company has witnessed a very encouraging response for the existing 10 properties and the addition of new destinations will help OYO in having a more holistic portfolio for its guests.
OYO's other brands include Townhouse Oak, OYO Townhouse, Collection O, and Capital O. The company plans to add 1,800 new properties to its premium portfolio by the end of 2023.
In January, Oyo was asked by Sebi to refile the draft IPO (Initial Public Offering) papers with certain updates. In September 2021, Oyo had filed preliminary documents with Sebi for a Rs. 8,430 crore-IPO. The IPO was delayed due to the then volatile market conditions making the company prepare to settle for a lower valuation at around $7-8 billion (roughly Rs. 57,700 crore to Rs. 65,900 crore) instead of the $11 billion (roughly Rs. 90,600 crore) it was targeting initially.