$5bn deal for 10,000 Dubai holiday homes
Gallery Suites Vacation Rentals which is a subsidiary of the UAE based IBC Group, has joined hands with Oyo Rooms for a deal valued at $5 billion to furnish and manage 10,000 premier holiday in Dubai.
Recently, Oyo was backed by AirBnB with a buy in of nearly $200 million, that follows a monumental $800 million funding round led by Masayoshi Son’s $100-billion Vision Fund, in 2018. The partnership will manage a portfolio of 10,000 elite properties in Dubai, as premier and uniquely furnished holiday homes that address a growing demand for exceptional short-term rental experiences, in the Emirati city.
According to Skift Research, the cumulative bookings market for short-term rentals will rise to an estimated $115 billion in 2019, up seven percent from about $107 billion in 2018. Gallery Suites and Oyo Rooms seek to emerge as the service providers of choice for the exclusive end of this burgeoning market in Dubai. The properties being furnished and managed by the partnership are focused within locations rated ‘high’ in the ‘occupancy heat map’ used to illustrate demand, in the recent ‘Dubai Holiday Homes Market Review 2019’ report released by Knight Frank – including the Dubai Marina, Palm Jumeirah and other exclusive addresses in the city.
Envisioned as offerings that will appeal to a growing segment of discerning international travellers who appreciate the finer things in life, the properties will feature exquisite artefacts and art installations. Gallery Suites aims to create inspirational living spaces that deliver a tasteful, elegant and classic ambience and experience, at some of the most sought-after locations in Dubai. The partnership will be further bolstered by the exceptional marketing and revenue management acumen that has seen Oyo Rooms emerge as one of the hospitality sector’s most outstanding performers globally.
The alliance between the two heavyweights comes at an opportune time. Globally, travellers are increasingly seeking out the ‘home away from home’ experience that short-term leasing offers, while aspiring to affordable luxury. Additionally, the upcoming Expo 2020 event is expected to attract 25 million visitors from all across the world to Dubai. A significant section of these arrivals will be cosmopolitan and sophisticated travellers who value refined and cultivated experiences. The partnership aims to offer a rich pool of high-quality holiday homes, in high-price locations, at affordable rates, to the international travellers visiting Dubai.
Gallery Suites Vacation Rentals is part of the highly regarded IBC Group, that is backed by global banking and finance leader Khurram Shroff, who was featured in the prestigious list of the “Top 100 Most Powerful and Influential Muslims in Great Britain and the World” by Power100. It will bring its comprehensive understanding of the select and exclusive segment of the Dubai short term rental market to the table.
As the deal, the IBC Group will retain ownership of the properties, leasing them to Gallery Suites to furnish and operate under permits issued to it. In turn, Oyo Rooms will enable many of the fundamental operational functions.
Pranac Mehta, the country head for UAE & Oman oYO Arabia, said, “We at Oyo UAE are keen to expand our engagement with the Dubai market and grow along with the IBC Group through the course of this project. The unique approach that The IBC Group and Gallery Suites are taking in selecting prime hot locations, and in furnishing this portfolio of properties, as well as the scale of the venture, represents an exciting possibility for collaboration between our two companies.”
Oyo Rooms has grown to have a presence across 82 countries and has secured the backing of SoftBank, LightSpeed Venture Partners, Sequoia, Hero, Greenoaks, and Huazhu Hotel Group Limited. Having recently launched Arabic language support on its app platform, the company is actively seeking to court the local customer base and extend its reputation for providing convenient, reliable and comprehensive services into the region.
Source: Trade Arabia
Fulya Altunyay/[email protected]