Global travel technology company OYO’s U.S. operations outpaced the budget hotel segment’s growth in RevPAR with an 18% rise in 2022 versus 2019. The budget hotel segment grew by only 6% in the U.S., according to STR reports.
OYO has seen significant growth in its priority markets of Miami, Houston and Phoenix, where it has sizable concentration of hotels, the company reports. According to STR Miami submarket report, the budget segment in the region saw a 21% jump in RevPAR in 2022 vs 2019, while OYO hotels in the region saw a 28% uplift in RevPAR in 2022 vs 2019, which translated to 1.3x higher growth than the other budget hotels in the region. Overall, the region has witnessed a shift in demand pattern with majority of bookings coming from domestic tourists.
The company saw a 13% jump in RevPAR in Houston region while the budget hotel segment here saw a meager 0.16% growth in RevPAR, according to STR’s submarket report. For OYO, the increase in demand in the region can be attributed to uptick in business travel, given the region’s proximity to the oil & gas hub.
A popular leisure market, Phoenix saw a 32% jump in RevPAR in 2022 versus 2019 whereas OYO’s hotels in the region saw 41% jump in RevPAR again, 1.3x higher than industry RevPAR.
“OYO’s U.S. hotels have seen a significant improvement in RevPAR in 2022, surpassing industry average,” said Gautam Swaroop, CEO, OYO International. “Domestic tourism has spearheaded this uplift with leisure and revival of business travel in 2022, leading the way. After two years of travel constraints, the US government easing restrictions in summer 2022 has played an important role in opening up domestic travel in the country and paving way to creating newer tourist pockets across the country.”
