Proximity to local tourist clusters will be key factor for the tech-enabled hotel aggregator's decision to add these properties to its portfolio
Oyo plans to add 400 properties to its leisure destinations portfolio by the end of 2022, underscoring their significant expansion plan in the leisure segment.
The multinational hospitality chain has already added around 600 properties in the segment this year. The focus will be on 19 leisure markets including Goa, Shimla, Amritsar, Puri, Tirupati, Udaipur, Mysore and Gangtok.
Proximity to local tourist clusters will be a key factor in adding new properties to its leisure portfolio, according to a report by The Economic Times.
The hospitality firm will also target customer categories like families, friends, pilgrimage groups and groups that travel with their own cooking arrangements to suit their food preferences.
Following the pandemic-induced lull in the hospitality sector that lasted for two years, there has been a significant rise in demand this year. This has been beneficial for major players in the market such as Oyo, who is backed by Softbank, Sequoia Capital and Airbnb among others.
In financial year (FY) 2021, the company reported Rs 3962 crore as revenue from operations. This went up to Rs 4781.4 crore in FY 2022. Oyo's revenue from operations stands at Rs 1,459.3 crore at the end of the first quarter in FY 2023, as per an addendum filed with Sebi (Securities and Exchange Board of India).
Oyo had filed its draft red herring prospectus (DRHP) for its initial public offering (IPO) in October last year. Recently, they suffered a dip in their valuation in the private market, following reports of a markdown by Softbank.