After setting foot in China and the UK, OYO Hotels, South Asia’s largest and one of the fastest growing hospitality chains, 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 AED 150 (USD 50). OYO plans to host guests in over 12,000 rooms, 150 Hotels and all seven 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% compound annual growth rate over the next 24 months, thus posing a huge potential for OYO Hotels.
“We are ready to tap this opportunity”
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 bench marked 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 addressing the needs of millennial travellers, aspiring for hassle free accommodations. These properties will be operated under models of manchise, lease with full-inventory control similar to their operations in other markets like India and China. These hotels aim to 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.
“An attractive market with sizeable internet and mobile presence”
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.