Oravel Stays, the parent company of hospitality giant OYO, aims to unveil 13 self-operated hotels under its upscale brand ‘Palette’ by year-end.
Following a model akin to OYO Rooms, the startup announced plans to commence its venture by launching a Palette hotel in Morbi, Gujarat, according to a statement.
Oravel Stays mentioned that the new hotel will be strategically positioned to serve the requirements of business travelers in the nation’s ceramic hub. With 48 rooms, it aims to meet the demand for high-quality accommodation amidst the area’s flourishing economic development.
Last year, Oravel Stays launched its first Palette brand hotels through a pilot program, unveiling 10 properties across various cities including Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar, and Bengaluru.
The startup announced plans to take direct operational control of specific Palette hotels located in “high-growth and promising locations.”
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By the end of the year, Oravel Stays aims to have 23 hotels operating under the new brand.
“We are excited to launch our first self-operated Palette hotel in Gujarat, and what better city to start with than Morbi. With its booming economic scene and growing business opportunities, Morbi is an important market for us…,” said Oravel Stays’ business head Aditya Sharma.
Interestingly, the hospitality unicorn has been experimenting with the brand name Palette for some time now. In 2018, it announced its foray into the upscale hotel category under the name Palette Resorts.
Last year, it finally started testing the new offering through a trial launch in various cities, albeit on a smaller scale. In addition, the Gurugram-based startup also runs sub-brands including Townhouse Oak, OYO Townhouse, Collection O, and Capital O under its umbrella.
Established in 2013 by Ritesh Agarwal, OYO is a leading player in the hospitality industry with support from notable investors such as SoftBank, Airbnb, Lightspeed Venture Partners, Innoven Capital, and Hero Enterprises.
As OYO prepares for a potential public listing by the year’s end, the introduction of the new offering aligns with its strategic plans. Furthermore, OYO has achieved profitability amidst these advancements.
Last month, OYO CEO Ritesh Aggarwal revealed that the startup had achieved its second consecutive profitable quarter in Q3 FY24, with its profit after tax (PAT) doubling to INR 30 Cr.
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