OYO To Add 1800 Premium Hotels in 2023

OYO has announced that it plans to double the number of premium hotels in India in 2023. It plans to support the surge in business travel by increasing its footprints across all the major business cities.

OYO plans to add approximately 1800 premium hotels this year. OYO’s focus on premium hotels started in the last quarter of 2022 when it added more than 400 new premium hotels between October to December. OYO’s expansion will focus on key business cities such as Bangalore, Hyderabad, and Chennai in South India, Delhi and NOIDA in North India, Kolkata in East India, and Mumbai in West India.

A report by credit rating agency ICRA says that India’s hotel room supply pipeline is expected to grow at 5-year CAGR of 3.5-4% adding approximately 15,000 rooms to the pan India premium inventory of approximately 94,000 rooms in financial year 2023. As per the findings of the report, pan-India premium hotel occupancy is expected to be 68-70% for FY23. Service industry is anticipated to lead the demand for business travel in the first quarter of the year 2023.

Elaborating on the plan, Anuj Tejpal, Chief Merchant Officer, OYO said “We are seeing a clear trend of people’s willingness to spend more on experiences. Therefore, hotels are now offering additional services and amenities to enhance the travel experience and make it more convenient for guests. Our expansion plan focusing on the growth of premium hotels is aligned with this trend”.