ZO Rooms, the budget hotel chain offspring by backpacker’s hostel chain Zostel, in now announcing the launch of ZO Prime, a new premium offering from the company in the category of 3 start hotels.

ZO Prime is an aggregator of of 3 star hotels across India. It provides customers with all the amenities and luxuries as per 3 star standards. The service is currently launching with 500 ZO Prime rooms across 35 cities, including metros. The company is expected to increase this to 10,000 within next 12 months.

The rooms in this category starts at Rs 2,000, and offers a host of services like air-conditioned rooms, complimentary wi-fi and breakfast, 8 inch mattresses, 32 inch LCD TV, wake up call, among others.

Commenting about the launch of this new service, Dharamveer Singh Chouhan, Co-founder and CEO of ZO Rooms, said,

We want to cater to the entire ecosystem and become relevant to all kinds of travelers. We already have a loyal customer base of more than 2,00,000 people who now only prefer to stay with us wherever they travel. To give our customers a complete range of stay options, we are coming up with these new categories. We have kept the pricing of these models such that more and more customers find value in our products and services. It is indeed a step forward to our exciting journey ahead.

ZO Rooms is planning to foray into multiple categories as ZO Prime is the company’s first step towards that. It will soon launch various other offerings such as ZO Apartment, ZO Homes and ZO Star over the next three-six months. By the end of 2016, the company aims to have more than 75,000 hotels and 60,000 rooms across the nation.

The company was founded in 2014 by Chetan Chauhan, Tarun Tiwari, Siddharth Janghu, Akhil Malik, Dharamveer Chauhan, and Paavan Nanda. Till now, the company has received $47 million in 2 funding rounds from Tiger Global Management and Orios Venture Partners.

Budget hotel industry is a $20 billion industry in India and to dominate this market, Zo Rooms will have to compete with the likes of Oyo Rooms and StayZilla.

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