Unlocking Comfort: How Oyo’s Focus on Serviced Hotels is Elevating Your Travel Experience

Oyo aims to significantly boost its company-serviced hotel properties in revenue, targeting an increase from 22% to 44% this financial year. Currently, Oyo operates 1,300 hotels across 124 cities and plans to expand this to 1,800 properties in 300 cities. Their focus will mainly be on mid-range brands like Townhouse Oak, Capital O, and Palette, along with the premium brand Sunday.

In September 2023, Oyo shifted its strategy by launching company-serviced hotels, moving away from its traditional franchise model. This change is driven by strong demand in leisure cities, pilgrimage spots, and key business areas.

So, why this shift? Oyo reports that company-serviced hotels enjoy double the occupancy rates compared to franchise properties and receive higher customer ratings. Last December, they celebrated an impressive 250% growth in this segment within just a year of launching it.

Varun Jain, Oyo’s chief operating officer, highlighted that this initiative aligns with the company’s broader strategic focus for 2025, emphasizing profitability through improved guest experiences.

This move marks Oyo’s fastest-growing global segment. The company credits its growth to standardized operations and enhanced service quality, which translate to higher revenue potential.

Looking at the trends, more travelers today seek consistent quality in their stays, favoring brands like Oyo that promise a better experience. According to a recent survey, over 70% of travelers prioritize customer service and cleanliness when choosing accommodation. This insight underscores Oyo’s decision to double down on company-serviced properties.

In summary, by expanding its company-serviced hotel portfolio, Oyo aims to cater to a growing preference for reliable and high-quality experiences in the hospitality industry.

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