Indian hospitality major OYO will launch OYO Homes in Dubai, which will offer apartments for short stays.
UAE is the first international market the OYO Homes platform will be launched, which allows customers can check into apartments on daily, weekly or monthly basis.
“Holiday homes in the UAE are a licensed category. Landlords must be licensed with [Dubai’s] DTCM. We are a licensed platform and are equipped to operate holiday homes in Dubai, hence our move to launch OYO Homes in Dubai,” Manu Midha, regional head, Middle East, OYO Hotels & Homes, told Arabian Business.
A first such initiative outside India, the OYO Homes will take up apartments on long-term leases from individual owners, furnish it and rent it out through OYO’s own website, Airbnb and other such rent out service platforms and apps.
UAE is the first country where OYO has decided to expand its OYO Homes platform outside India, Midha said.
As of now OYO has the licence for operating short stay homes on rent only in Dubai, though it operates in 4 cities in UAE – Dubai, Sharjah, Ras Al Khaimah and Fujairah.
OYO Homes is believed to have already signed up with owners of 40 properties in the UAE, and is targeting to take up 200 properties in the next six months to offer the short stay services under its brand.
Industry observers see OYO’s move to get into the short stay homes segment as a smart move to cater to the growing number of business travellers to Dubai and other leading cities in UAE on one to three-month visas.
For the Indian hospitality major, getting into the short stay apartment segment will help it to expand its services, as well as attracting customers prefer not to stay in hotels for longer periods.
“For OYO, launching OYO Homes makes in Dubai makes a lot of sense as it can utilise its brand strength to get a head start in getting customers in this segment,” said a senior executive with a Delhi-based leading property consulting firm.
“Besides, there is a lot of synergy between OYOs hotel business and OYO Homes segment and therefore can have certain common services for both.”
OYO Homes will be responsible for managing and the day-to-day operations of apartments under it.
“It is neither easy for single owners/landlords to deal with check-in and check-outs, cleaning, manage bookings nor they may have the time for these things. On our part, our employees on field can take care of everything,” Midha said.
“We expect this segment to achieve faster growth due to the rising number of business travellers and international tourists to Dubai,” Midha added.
Having been running OYO Homes in India for the last one year, OYO has built up a trained team of experts to undertake this business.
The team in Dubai, however, will have to familiarise itself with the specific local rules and regulations to successfully implement such services.
The Indian unicorn start-up major currently operates in several international markets such as China, the UK, Indonesia, Malaysia, besides UAE.