After making a significant impact in budget and mid-segment hotels, home-grown hotels chain major OYO has been entering premium and upscale hotels segment.
Ritesh Agarwal-led firm has purchased a 64-suite building in Ahmedabad. The transaction amount of the deal has not been disclosed.
OYO partnered hospitality firm Mountania Developers for the transaction. It will also redesign the building into a premium hotel by the end of this year.
The company will work with Mountania to acquire more premium assets in the coming months.
In the coming years, the global luxury hotel market is expected to witness significant growth.
“Oyo wants to leverage this opportunity to enable our guests to experience living the good life, even while travelling for business,” said Aditya Ghosh, chief executive, India and South Asia, Oyo Hotels and Homes.
The Gurugram-based firm is also eyeing to enter the five-star and seven-star hotels categories. The hotel chain is in advanced talks close to 10 premium properties owners, as per a Mint report.
SoftBank-backed Oyo Hotels & Homes has also reportedly acquired a four-star hotel Fortune Select Metropolitan Jaipur, which is managed by ITC Hotels for about Rs 40 crore.
Of late, OYO has been on an assets buying spree.
Recently, OYO had bought Hooters Casino Hotel in Las Vegas in August. The company has partnered with Highgate, which operates Hooters Hotel, to create its first key flagship in the city. The transaction amount of the deal was around $135 million.
Oyo had also committed $300 million to renovate properties in Europe. Three months ago, the hospitality firm had acquired Amsterdam-based @Leisure Group from Axel Springer for an undisclosed amount.
Early this month, it acquired Danamica, a Copenhagen-based data science platform which is specialised in dynamic pricing.
The six-year-old hotel chain is now the world’s third-largest chain of hotels. Within a year of its operation, China became one of its largest contributing market in revenue.