OYO Launches Its Premium Resorts Brand ‘Palette’ – News18
OYO has announced its new brand Palette, focused on high-end resorts and hotels aimed at attracting luxury travellers. The move is part of OYO’s continuous efforts to enhance the flexibility of its premium property portfolio. These Palette resorts will be situated in well-known leisure spots across India, catering to both business and leisure travellers seeking quick getaways or staycations, as mentioned in their official statement on July 18.
OYO’s premium portfolio consists of various brands like Townhouse Oak, OYO Townhouse, Collection O and Capital O. They have ambitious plans to expand further by adding 1,800 new properties to this premium segment by the end of 2023. Inc42 reported earlier that the company, backed by SoftBank, is specifically targeting the premium hotel segment to capture a significant market share in the upscale hospitality market.
According to OYO’s statement, they have initiated a pilot launch of 10 Palette resorts in cities such as Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar and Bengaluru. As part of its plans, the company intends to further expand this venture by adding 40 more Palette resorts to its portfolio by the second quarter of FY 2024. The expansion will encompass cities like Delhi-NCR, Kolkata, Amritsar, Shimla, Goa, Udaipur, Pune, Mussoorie, Srinagar and Kochi.
Anuj Tejpal, the chief merchant officer at OYO, stated that the changing preferences of travellers, driven by increased disposable incomes have led them to seek more than just accommodation; they now desire unique and memorable experiences. This shift in mindset has prompted OYO to diversify its portfolio and introduce the Palette brand.
Additionally, earlier this month, OYO, led by Ritesh Agarwal, announced its plan to incorporate 500 new hotels in the host cities of the upcoming men’s cricket World Cup in India, further expanding its presence in the hospitality market.
Indeed, OYO’s recent developments align with its preparations to go public as a company. Notably, there has been a turnaround in its financial performance, as revealed during a town hall meeting in April, where OYO informed employees about achieving positive cash flow in the quarter ending March 2023.
As part of the process to become a public company, OYO 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).
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