Oyo buys 4-Star Jaipur hotel from Emaar

New Delhi: SoftBank-backed Oyo Hotels & Homes has acquired Fortune Select Metropolitan Jaipur, currently managed by ITC Hotels, as part of its plans to enter the four-star segment currently dominated by marquee Indian and international hotel chains.
Oyo has acquired the Jaipur fourstar property from the Emaar Group, people familiar with the matter said. The hotel was sold to Oyo for about Rs 35-40 crore, they said.

ET had reported in June that Oyo was targeting the upscale, four-star hospitality segment in India and was seeking partnerships in that space.

An Emaar spokesperson said the company does not wish to comment on any prospective transaction till it is consummated. “As and when anything fructifies, an official announcement will be made,” the spokesperson said. An Oyo spokesperson said while it continues to evaluate newer categories and segments and explore opportunities for expanding its existing inventory in the upscale segment, at this stage, it does not have anything further to share or announce.

In response to ET’s query, Samir MC, managing director, Fortune Park Hotels, said terms of the existing operating service agreement with the Jaipur property were soon coming to an end. “The same will be reviewed by both parties to discuss the way forward," he said.

A brand of ITC’s hotel division, Fortune has several categories of properties. Fortune Select are four and five-star properties in business locations in metros, and key leisure locations. Fortune Park is a mid-scale business hotel range in the three to four-star category. Fortune Inn is a full-service business hotel range with 30 to 50 rooms and limited food and beverage outlets. Fortune Resort runs hotels located in popular leisure and holiday destinations in the mid-market and upscale segment.

“This is a direct acquisition. Oyo has been actively looking for properties in key metro locations and tier 1 cities in India in the four-star category,” said a person familiar with the development.