Oyo is making an aggressive push into the premium hotel segment through its Sunday Hotels brand. The hospitality company has set a target of 100 Sunday hotels by next fiscal year’s end.
The current count: 30 Sunday properties operational across 10 countries.
This move is part of a broader shift towards “premiumization,” driven by rising incomes and evolving traveler preferences.
From its debut in Jaipur just 15 months ago, Sunday Hotels has expanded to Indian cities such as Vadodara, Chandigarh, and Gurugram.
Internationally, the brand is also making inroads into the Middle East, Southeast Asia, and Europe, with its latest addition: Sunday Luxury Downtown Al Qudaybiyah in Bahrain’s capital Manama.
Sunday Hotels vs Oyo Hotels
Sunday Hotels represent Oyo’s foray into the four-star and five-star hospitality segment. Conceptualized for modern travelers seeking immersive experiences, these properties focus on personalized hospitality.
While the brand made its debut in Jaipur 15 months ago, Oyo’s parent company, Oravel Stays, launched Sunday Hotels as a joint venture with SoftBank in May 2023. The global rollout kicked off in August 2024 with the Sunday Holiday International Hotel in Dubai, followed by the Sunday Lansbury Heritage Hotel in the UK. The brand is now present in Saudi Arabia, the UAE, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam, with further expansions planned.
CEO Ritesh Agarwal recently hinted at a Sunday debut in the U.S: “We are keeping our eyes and ears open for interesting prospects. We’re looking at bringing Sunday to some very interesting iconic locations in the US,” he said at the Skift India Forum last week.
Agarwal also highlighted Sunday’s strong foothold in the Middle East: “At this point, we have more Sundays in the UAE and Saudi Arabia than in India, and we’re scaling very quickly.”
Speaking to Skift CEO Rafat Ali, Agarwal said that with outbound Indian travelers forming a substantial part of its customer base, Oyo’s narrative is increasingly centered on tapping into this market.
The Premiumization of Oyo
While Oyo remains dominant in the economy hotel segment, its premium shift reflects consumer trends. Talking about how India’s per capita income has been growing at a rapid pace in the last few years, Agarwal noted that increasing disposable incomes in India have fueled demand for better lodging experiences. “My job is to make sure that whatever the customers want we bring to them,” he said.
He pointed to luxury brands like Taj-parent Indian Hotels Company Limited (IHCL) and Oberoi-parent EIH as examples of this changing landscape.
Sunday Hotels fit within Oyo’s broader premium strategy, alongside its Townhouse and Palette brands. The company now manages over 1,000 Townhouse properties, up from just 100 a year ago, all pointing towards a strong momentum in the mid-to-premium segments.
An Oyo Management
Unlike in Europe and the US, where Oyo partners with third-party hotel management companies, the company is directly overseeing its premium properties in Asia. Agarwal explained this decision: “In India, organized management companies for premium hotels are still emerging. Rather than wait, we’ve chosen to manage these properties ourselves.”
Oyo’s expansion isn’t limited to Asia. The company recently announced a £50 million ($62 million) investment in the UK over the next three years, aiming to grow through leasehold agreements and management contracts with premium properties.
Puneet Yadav, Oyo’s UK country head, confirmed ongoing discussions with major hotel chains and real estate groups to scale operations.
The Future of Premium Travel in India
Euromonitor International projects India’s luxury market to grow from INR 536 billion ($6.4 billion) in 2022 to INR 822 billion ($9.8 billion) by 2027.
This shift is fueled by rising affluence and an increasing preference for high-end travel experiences.
During fiscal year 2024, Indians spent about $17 billion on international travel.
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