### Oyo Expands Premium Hotel Portfolio with Sunday Hotels
Oyo is making a bold move into the premium hospitality sector with its Sunday Hotels brand. The company aims to establish 100 Sunday Hotels by the end of the next fiscal year.
Currently, 30 Sunday Hotels are operational across 10 countries, marking a significant step in Oyo’s expansion strategy.
This initiative aligns with a broader trend of “premiumization” in the travel industry, driven by increasing disposable incomes and evolving traveler preferences.
### Rapid Growth of Sunday Hotels
Since its launch in Jaipur 15 months ago, Sunday Hotels has expanded to several Indian cities, including Vadodara, Chandigarh, and Gurugram.
Internationally, the brand is making strides in the Middle East, Southeast Asia, and Europe. Its latest addition, Sunday Luxury Downtown Al Qudaybiyah, recently opened in Manama, Bahrain.
### Sunday Hotels vs. Oyo Hotels
Sunday Hotels mark Oyo’s entry into the four-star and five-star hotel segment, catering to modern travelers who seek immersive and personalized experiences.
While the brand debuted in Jaipur, Oyo’s parent company, Oravel Stays, officially launched Sunday Hotels in May 2023 as a joint venture with SoftBank. The global rollout began in August 2024 with the Sunday Holiday International Hotel in Dubai, followed by the Sunday Lansbury Heritage Hotel in the UK.
Sunday Hotels now operate in Saudi Arabia, the UAE, Indonesia, Malaysia, Thailand, the Philippines, and Vietnam, with further expansion plans in the pipeline.
Oyo’s CEO, Ritesh Agarwal, recently hinted at a potential U.S. debut for Sunday Hotels:
*”We are keeping our eyes and ears open for interesting prospects. We’re looking at bringing Sunday to some very iconic locations in the U.S.,”* he said at the Skift India Forum.
Agarwal also emphasized Sunday Hotels’ strong presence 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.”*
### Oyo’s Shift Towards Premium Hospitality
While Oyo remains a dominant player in the budget hotel segment, its move into premium hospitality reflects changing consumer preferences.
Agarwal highlighted India’s rising per capita income as a key driver of demand for better lodging experiences:
*”My job is to make sure that whatever the customers want, we bring to them.”*
He pointed to luxury brands like Taj-parent IHCL and Oberoi-parent EIH as examples of the growing premium hospitality market in India.
Sunday Hotels complement Oyo’s broader premium strategy, which also includes its Townhouse and Palette brands. The company now manages over 1,000 Townhouse properties, up from just 100 a year ago, signaling strong momentum in the mid-to-premium segments.
### Oyo’s Management Approach
Unlike in Europe and the U.S., where Oyo collaborates with third-party hotel management companies, the company directly oversees its premium properties in Asia.
Agarwal explained this approach:
*”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, focusing on 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
According to Euromonitor International, India’s luxury market is projected to grow from **INR 536 billion ($6.4 billion) in 2022 to INR 822 billion ($9.8 billion) by 2027**.
This growth is fueled by increasing affluence and a rising preference for high-end travel experiences.
In fiscal year 2024, Indian travelers spent approximately **$17 billion on international travel**, further highlighting the demand for premium accommodations.
As Oyo continues its expansion into the premium segment, Sunday Hotels is set to play a crucial role in shaping the future of upscale hospitality in India and beyond.
Source: skift.com