OYO expands its international presence, sets its foot in the United Arab Emirates
OYO Hotels has launched its operations in the United Arab Emirates. With a string of over ten full-inventory – franchised and operated hotels and over 1100 rooms in 3 Emirates – Dubai, Sharjah and Fujairah, in the UAE, OYO Hotels is ready to offer the benefits of its full-stack technology led hospitality model to hoteliers across the country, with room rates starting 150 dirhams. OYO plans to host guests in over 12,000 rooms, 150 Hotels and all 7 Emirates, across United Arab Emirates, by 2020. According to data from Dubai Corporation of Tourism & Commerce Marketing (Dubai Tourism), overall, Dubai hotel room supply is set to reach 132,000 by the end of 2019. The Dubai Tourism also forecasts 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 compound annual growth rate over the next 24 months, a huge opportunity for OYO Hotels.
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 learnings and expertise we are ready to tap this opportunity. We’ve been at the forefront of the budget and mid segment hotels revolution in the markets we operate in, and can bring in our operational expertise and technology edge to the benefit of independent hotel owners. As per a recent report, Dubai alone will host over 20 million visitors and currently records approximately hotel keys per resident at 29.9 per 1,000 people, which is on the higher side when benchmarked 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 best out of the opportunity ahead of them.”
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.
“We are really excited about the opportunity offered by the UAE. This expansion, therefore, 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 with OYO Hotels they’ve found a trusted solution for all their travel and business needs,” added Manu Midha, Regional Lead, UAE, OYO Hotels.
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.”
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. OYO Hotels will also commit to supporting the local economy through job creation, both direct and indirect.
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.”