Gallery Suites Vacation Rentals and Oyo Rooms partnership combine on $5bn deal to furnish and manage 10,000 holiday homes in Dubai
Gallery Suites Vacation Rentals, a subsidiary of the UAE-based IBC Group, on Wednesday announced that it has joined hands with Oyo Rooms on a $5 billion deal to furnish and manage thousands of holiday homes in Dubai.
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 short-term rental experiences in the city.
Oyo, the largest hospitality company in Asia and the third largest in the world, was recently backed by AirBnB with a buy-in of nearly $200 million.
The partnership comes as a report released by Skift Research showed the cumulative bookings market for short-term rentals will rise to an estimated $115 billion in 2019, up 7 percent from about $107 billion in 2018.
Gallery Suites and Oyo Rooms said they 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 such as Dubai Marina and Palm Jumeirah, a statement said.
Gallery Suites said it 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 alliance comes ahead of the upcoming Expo 2020 event which is expected to attract 25 million visitors from all across the world to Dubai.
Gallery Suites Vacation Rentals already has a substantial presence in Dubai and has over 200 properties in JLT, JBR, Palm Jumeirah and Dubai Marina.
Oyo Hotels & Homes operates real estate comprising more than 23,000 hotels and 125,000 vacation homes.
Earlier this month, IBC Group announced that it intends to acquire 10,000 properties in Dubai to furnish and manage as holiday homes.
The company said it has contracted Berkshire Hathaway HomeServices Gulf Propertieson an exclusive basis to play an advisory brokerage role to assist in identifying, acquiring and financing the properties.
The deal is valued at $5 billion, with a possible scale up to acquiring one million properties in over 100 cities across the globe, it said.