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Oyo Hotels (India) to Franchise in UAE

29 Nov 2018 - Oyo Hotels & Homes, a global chain of leased and franchised hotels and homes, plans to launch its unique business model that combines the best of management contract and franchise agreement in the UAE.

Through its ‘Manchise’ business model, Oyo aims to grow its footprint within the two-, three- and four-star hotels in UAE. With this lease and full inventory control model, Oyo currently manages 1,300 rooms across 16 properties in Dubai, Sharjah, Ras Al-Khaimah and Fujairah and is set to touch 12,000 rooms by 2020.

“Since our recent launch, we have been inundated with requests from several hotel owners in the UAE to migrate onto Oyo’s manchise business model. We are on track at the moment and our vision is to support the large number of business travellers that are expected to arrive by the time UAE opens door to its billion-dollar EXPO 2020, with 190 country pavilions,” said Manu Midha, regional head, Middle East, Oyo Hotels & Homes.

Dubai was recently crowned the most visited city in the Middle East and the 4th most popular destination globally, with 15.78 million overnight visitors last year. EXPO 2020 itself is estimated to bring in over 20 million visitors.

“We have a large presence in India, China, Malaysia, Nepal, UK and have recently entered Indonesia as well. As per our study several business travellers from these countries frequently visit UAE in large numbers for various trade shows, events and exhibitions. UAE, one of the world’s leading MICE capital of the world then becomes a highly strategic location for us. This is in addition to the growing number of tourists from these countries, especially India, China and UK. This further strengthens our brand equation as people from these countries trust Oyo for its quality, competitive pricing and location efficiencies,” added Midha.

Tourism and hospitality have been the pillars of non-oil dependent UAE economy. The market is expected to reach a value of $7.6 billion by 2022, growing at a CAGR of 8.5% for 5-year period, as per Alpen Capital's latest report on GCC Hospitality Industry 2018. A major portion of the growth is attributed to the spurt in international tourists that are expected to visit the Emirates in the near future.

“While keeping a control over the cost, our ability as a full stack technology led hospitality service provider empowers hotel owners in UAE with a competitive edge that will significantly elevate the customer experience,” added Vartika Goel, country head, UAE, Oyo Hotels & Homes.

“And for our customers, we ensure that we are consistent with the high level of quality and service that they have been so accustomed to. In the process of the Oyo expansion, an estimated 10,000 jobs are expected to be created till the end of 2020. To maintain the level of quality expected from an Oyo property a training facility is also on the cards in the UAE.”

Launched in May 2013, Oyo Hotel’s mission is to create quality living spaces, anywhere, for everyone. The company was set up with the purpose to address the lack of equilibrium between demand and supply of quality living space, resulting in varied customer experiences and unpredictable business for hotel owners. Oyo Hotels aims to address this gap, using technology and talent, leveraging its built distribution, operational and transformational capabilities to redefine the hospitality landscape, globally.

Oyo Hotels has pioneered the world’s first full stack technology led hospitality model and has over 330,000 franchised and leased rooms as a part of the chain, delivering strong revenue yields for its asset partners.


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