 "Oyo restarts self-operated hotels, targets 200 new premium properties")
IPO-bound hospitality major OYO has relaunched self-operated hotels under the ‘Prime Partner Program’ more than two years after it halted the service.
As part of the program, OYO will secure annual, long-term management contracts on a revenue-share basis for 200 premium hotels across Indian metros, the company said.
These hotels will be tagged as ‘Managed by OYO’ on the company’s app. OYO is also looking to partner with real estate developers to identify and develop new hotel properties across various regions.
The SoftBank-backed firm had closed its self-operated hotel model in 2020 just before the start of the first wave of COVID-19 and is restarting it again after three years.
During the pilot phase of the program, OYO has partnered with 30 realtors and started operations in more than 35 hotels. These hotels are spread across key cities such as Delhi, Bengaluru, Hyderabad, Kolkata, Goa, Jaipur, Mumbai, Chennai, Pune, Pondicherry, and Vadodara.
“By offering hoteliers and property owners the opportunity to participate in this program, OYO aims to create a win-win situation that benefits landlords, professional hotel operators as well as travellers. We are getting encouraging responses from our top hoteliers and planning to increase the current target of 200 hotels under this program,” said Anuj Tejpal, Chief Merchant Officer, OYO.
The program will allow its top hotel partners to earn additional revenue without taking the risk of leasing or the overhead costs of starting a new hotel. These operators will get dedicated relationship managers and access to OYO’s network of over 15,000 corporate accounts and more than 10,000 travel agents.
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Most of these hotels will be onboarded under the company’s premium hotel offerings such as Townhouse, Townhouse Oak, and Collection O.
"I began my partnership with OYO with one hotel in Chennai, and in three years, expanded to 13 properties in Chennai, Bengaluru, and Ooty. This program will serve as a catalyst for launching operations nationally in cities such as Pondicherry, Mumbai, Bengaluru, and Hyderabad, without the need for signing lease agreements,” said Ganesh K, Director, GSILVER Hotels Private Limited, a hotel chain that has partnered with OYO under the program.