OYO to invest 50 million pounds in UK in major strategic shift to expand premium hotel portfolio

OYO on Tuesday, February 4, announced that it plans to invest 50 million pounds or about ₹540 crore in the United Kingdom to focus on its expanding premium hotel portfolio.

The investment in the UK will span three years and is expected to generate 1,000 jobs in the UK’s hospitality sector, the company said in a statement.

OYO has been actively pursuing the premiumisation of its UK portfolio, signifying a significant strategic shift and pivoting towards premium inventory acquisition, focusing on securing long-term leasehold and management contracts.

The travel tech unicorn is also in advanced-stage talks with several large hotel chains and real estate companies for potential asset management transactions.

"OYO's investment in premium hotels will not only strengthen our tourism infrastructure but back our ambitious 'Showcase Britain' initiative, helping to boost economic growth as part of our Plan for Change," Baroness Poppy Gustafsson OBE, the UK Minister for Investment said.

Puneet Yadav, Country Head - OYO UK said that OYO entered the UK market in 2018, leveraging a model that had proven successful in other global markets.

"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," Yadav stated.

The investment was announced during the Nasscom delegation to the UK, organized by the Department for Business and Trade, UK.

Appreciating the role being played by tech startups in strengthening the Indo-UK trade, Rajesh Nambiar, President of Nasscom said, "India's tech startup ecosystem has evolved into a global force, driving innovation and economic growth beyond its borders. 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".

About OYO

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 on-boarded 18 hotels under this model and plans to add 22 more across key cities including London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.

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.