Oyo Hotels and Homes, India’s fastest emerging hospitality chain, is stepping into the four-star hotels segment in India with the purchase of a 64-suite building in Ahmedabad for an disclosed amount.
The transaction process and to redesign the building in a premium hotel by the end of 2019, the World’s third-largest hotel company has collaborated with Mountania Developers.
Gurugram-based hospitality major also plans to add more premium and upscale hotels.
“This (premium) segment holds a lot of promise for us given the rapid growth of the hospitality industry over the last few years. The global upscale and luxury hotel market is predicted to witness tremendous growth and, at Oyo, we want to leverage this opportunity to enable our guests to experience living the good life, even while travelling for business,” said Aditya Ghosh, chief executive, India and South Asia, Oyo Hotels and Homes.
The SoftBank backed hospitality chain Oyo was started by Ritesh Agarwal in 2013. The startup was started from a single hotel to over 8500 hotels at present. It is the fastest growing network of hotels, offline and online.
“We believe that our deep understanding of Indian consumers and trends, coupled with our operational and technological capabilities, will be a game-changer for us in the upscale segment,” Ghosh added.
Oyo aims to enter the five-star and seven-star hotels categories as well. It is in advanced talks with owners of at least 10 such properties, said one person aware of the matter, requesting anonymity.
The company also claims to have a balance sheet of about $1.5 billion. It has raised nearly $1.7 billion in funding over 12 rounds.