Dubai: Gallery Suites Vacation Rentals LLC, a subsidiary of the UAE-based IBC Group, today announced that it has joined hands with OYO Rooms for a deal valued at USv$5 billion (Dh18 billion) to furnish & manage 10,000 premier holiday homes in Dubai.
The largest hospitality company in Asia and the third-largest in the world, OYO was recently backed by AirBnB with a buy-in of nearly $200 million, which follows a monumental $800 million funding round led by Masayoshi Son’s $100 billion dollar 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 a report released by Skift Research, the cumulative bookings market for short-term rentals will rise to an estimated $115 billion in 2019, up 7% 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, to stimulate the mind and stir the soul. 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.