OYO opens its first luxury hotel in Dubai, expects more than 1 lakh Indian tourists this year

Shark Tank India judge Ritesh Agarwal-led OYO has announced the launch of its first luxury hotel, the Palette Royal Reflections Hotel and Spa, in Dubai. 

The opening marks a significant step in OYO's strategy to expand its premium offerings, driven by the increasing demand from Indian tourists for high-end accommodations in the region. 

The company, traditionally known for its budget hotel operations, has ventured into the premium segment with the launch of the Palette brand.

Why Dubai?

Dubai has long been a favourite destination for Indian travellers, thanks to its luxury shopping, stunning architecture, and vibrant culture.

Dubai’s relaxation of visa policies, including the introduction of a 5-year multiple-entry visa for Indians, is expected to further boost the number of Indian travellers visiting the emirate.

In 2023, India led the ranks with 11.9 million passengers visiting Dubai. OYO anticipates that its Dubai properties will attract over 100,000 Indian tourists in 2024.

Leadership comments

Nitin Gupta, Business Head of Oyo Middle East, highlighted the surge in Indian tourists seeking luxury stays in Dubai: “We have seen a significant increase in the number of Indian tourists requesting upscale accommodations. Oyo is committed to meeting the needs of these travellers visiting Dubai.”

The Palette Royal Reflections Hotel and Spa will also assist guests with travel arrangements and sightseeing tours, providing comprehensive hospitality solutions.

OYO's presence in Dubai

Oyo boasts over 700 properties in the United Arab Emirates, with more than 200 located in Dubai. This new hotel in Dubai is part of Oyo’s broader initiative to bolster its premium property portfolio globally.

The IPO-bound traveltech firm has piloted 10 Palette resorts in Indian cities such as Jaipur, Hyderabad, Digha, Mumbai, Chennai, Manesar, and Bengaluru.

This year, Oyo plans to expand the number of Palette hotels in India to 23. Internationally, Oyo’s premium properties include the Palette Resort at Myrtle Beach in South Carolina, Palette Siniya Island Resorts in Umm Al Quwain, UAE, and Palette Grand Morocc in Thailand.

Upscaling marketing strategy

At the Skift India Summit, Ritesh Agarwal, CEO of OYO, emphasized India’s critical role in the company’s upscale market strategy. He noted that Indian consumers' rapidly evolving preferences present a unique opportunity for growth. 

“Our view is that fundamentally, the same customers who are spending $30 today would like to spend $50 or $60 in some years. And the same customers who are spending $50 today would like to spend $100 or $200 in the years to come. In India, there’s an opportunity to upscale because many of our current owners are acquiring these upmarket hotels, and our customers are eager to experience them,” Agarwal explained.