OYO to invest 50M pounds in UK to expand premium hotel portfolio
This investment is projected to create 1,000 direct and indirect jobs while attracting more international travellers, providing a significant boost to the local hospitality industry.
Global hospitality technology company is planning to invest 50 million pounds in the UK over the next three years, with a primary focus on expanding its premium hotel portfolio. This investment is expected to generate 1,000 direct and indirect jobs and attract more international visitors, providing a significant boost to the local hospitality industry.
OYO is actively pursuing premiumization of its UK portfolio through a multi-pronged approach, the company said in a statement.
The company is shifting its focus towards acquiring premium inventory, emphasising long-term leasehold and management contracts. It is currently in advanced talks with several major hotel chains and real estate firms regarding potential asset management transactions.
In 2024, OYO's parent company, Oravel Stays Limited, marked its entry into the UK's premium segment with the launch of SUNDAY Lansbury Heritage in Canary Wharf.
“OYO entered the UK market in 2018, leveraging a model that had already proven successful in other global markets. Over the years, we have grown our portfolio to over 200 properties across 65 cities, establishing a strong foothold in the region. While we continue to cater to the budget segment, we are now focused on expanding through leasehold agreements and management contracts with premium properties. Additionally, we plan to introduce several of our popular European brands to the UK market, further diversifying our offerings and meeting evolving customer needs," stated Puneet Yadav, Country Head, OYO UK.
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The investment was announced during the Nasscom delegation to the UK, organised by the UK’s Department of Business and Trade. Nasscom President Rajesh Nambiar praised India's tech startups for driving global innovation and strengthening Indo-UK trade, contributing to its growth from $42 billion to $50 billion and beyond.
"Proud to see tech startups like OYO strengthening trade ties between both the nations, playing a crucial role in increasing the bilateral trade from $42 billion to $50 billion and beyond. By building on the legacy of excellence set by Indian IT industry and tech startups in the UK, this exemplifies the next wave of India’s entrepreneurial impact on the world stage,” he mentioned.
OYO has over 200 hotels mostly in the budget segment spread across 65 cities in the UK with London, Manchester, Birmingham, Cardiff and Brighton, being the main clusters.
The company recently announced its plans to open over 40 premium self-operated hotels through leasehold contracts in this financial year. It has already onboarded 18 hotels under this model and plans to add 22 more across key cities including London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.
Edited by Megha Reddy