World’s Fastest Growing Hotel Chain OYO to Expand into UAE
South Asias’s largest and world’s fastest growing hotel chain, OYO Hotels, has announced its plans to officially launch in the UAE, starting with Dubai.
The budget-friendly hotel chain will expand in the United Arab Emirates starting with operations on the Dubai, Sharjah and Fujairah and later will expand into all severn Emirates. The company will have ten franchised and operated hotels and over 1100 rooms across the UAE, and offer the benefits of its full-stack technology led hospitality model to hoteliers across the country.
The company raised AED3.68 billions (US$1 billion) funding through SoftBank Investment Advisers last month. OYO chain of hotels is currently present in over 350 cities with over 12,000 asset partners spread across six countries including China, Malaysia, Nepal, UK and now UAE in the Middle East.
The company has set ambitious targets and hopes to host guest in over 12,000 rooms within 150 hotels across the UAE by 2020, creating 4000+ direct and indirect jobs in the UAE by the end of 2019.
According to Dubai Tourism & Commerce Marketing (DTCM), the total Dubai hotel rooms supply is set to reach 132,000 by the end of 2019. DTCM also expects the hospitality sector to experience sharp , sustained growth over the coming years, with occupied room nights set to reach 35.5 million annually in 2019, representing a 10.2 percent CAGR over the next 24 months.
Commenting on the developments, Ritesh Agarwal, Founder and CEO, OYO Hotels, said : with over 170 countries committing to the World Expo 2020, the hospitality sector in the Middle East, and more specifically UAE, is poised to grow substantially and with our market learning and expertise we are ready to tap this opportunity. We’ve been at the forefront of budget and mid segment hotels revolution in the markets that we operate in and can bring in our operational expertise and technology edge to the benefit of the independent hotel owners. Dubai alone will host over 20 million visitors and currently records approximately hotel key per resident at 29.9 per 1000 people, which is one of the higher side when benchmark against international hub cities, a clear indicator of the potential of this market. We are really excited to bring our quality living experiences at affordable prices to visitors of Dubai, while helping local hotel owners make the best out of the opportunity ahead of them”.
“We are really excited about the opportunity offered by the UAE. This expansion is in line with our quest to support the country’s hospitality ecosystem and creating infrastructure for asset owners to grow and run successful businesses, all of this while ensuring high standards of quality. We want our potential guests and partners to know that in OYO Hotels they’ve found a trusted solution for all their travel and business needs,” added Manu Midha, Regional Lead, UAE, OYO Hotels.
The United Arab Emirates is working on a target of opening over 75,070 rooms, across the country and other neighboring countries, and preparing to welcome over 25 million visitors at World Expo 2020. OYO will be working towards transforming the hospitality industry in the region, by partnering in this vision.
At the time of entry, OYO Hotels will offer guests the high quality and affordable experience – perfectly suited for the needs of millennial travelers, aspiring for hassle free accommodations. These properties will be operated under models of manchise, lease with full – inventory control similar to other markets like India and China. These hotels will provide affordable and trusted living options for travelers from GCC countries, India and other International tourists, including business and leisure travelers.
Vartika Goel, Country Lead, OYO Hotels, UAE, said, “The country is an attractive market with sizeable internet and mobile presence, which complements our approach. We’ve received an overwhelming response to OYO Hotels offerings in the country since our soft launch and look forward to hosting more guests in the coming years.”
Talking about the OYO’s impact on the hospitality sector so far, Ritesh added, “At OYO, our mission is to create beautiful and quality living spaces by empowering hotel owners to become better hospitality players while ensuring an end-to-end controlled experience for our guests. With our technology and operational expertise, we are enabling hotel owners with technology and across South Asia demand reach, that will help them drastically improve the customer experience while maintaining efficiencies, high occupancy, and yields. We’ve been responsible for enabling over 100,000 job opportunities in South Asia and look forward to creating 4000+ direct and indirect jobs in the UAE by the end of 2019.”
The OYO Advantage
Launched in May 2013, OYO Hotel’s mission is to create quality living spaces, anywhere, for everyone. The company was set up with the purpose to address the lack of equilibrium between demand and supply of quality living space, resulting in varied customer experiences and unpredictable business for hotel owners. OYO Hotels aims to address this gap, using technology and talent, leveraging its built distribution, operational and transformational capabilities to redefine the hospitality landscape, globally. OYO Hotels has pioneered the world’s first full stack technology led hospitality model and has over 270,000 franchised and leased rooms as a part of the chain, delivering strong revenue yields for its asset partners.