OYO Invests £50 Million to Expand Premium UK Hotel Portfolio
OYO, a renowned travel tech company, has announced an investment of £50 million aimed at expanding its premium hotel portfolio in the UK. This strategic initiative is also set to create 1,000 jobs and strengthen the UK’s tourism infrastructure over the next three years. As part of this expansion, OYO also plans to bring several popular European brands to the UK market.
Since entering the UK market in 2018, OYO has leveraged a successful model that has seen growth in other global markets. Initially focusing on the budget segment, the company is now shifting its focus towards premium inventory acquisition. This includes pursuing long-term leasehold and management contracts with premium properties.
OYO is engaged in advanced stage discussions with several large hotel chains and real estate companies regarding potential asset management transactions. This aligns with the company’s strategy to support the UK’s tourism infrastructure while boosting economic growth through its ‘Showcase Britain’ initiative. Such efforts will contribute towards the ambitious ‘Plan for Change’ as articulated by the UK Minister for Investment, Baroness Poppy Gustafsson OBE.
Puneet Yadav, the Country Head for OYO UK, emphasized the company’s continued commitment to serving the budget segment while focusing on premium expansion. He stated, “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.”
As part of their maintained efforts, OYO has over 200 hotels, primarily in the budget segment, across 65 cities in the UK. The main clusters include London, Manchester, Birmingham, Cardiff, and Brighton. However, with the new focus on premium offerings, the company recently announced plans to open over 40 premium self-operated hotels through leasehold contracts within this financial year.
Currently, OYO has successfully onboarded 18 hotels under this new model and seeks to add 22 more hotels across several key cities including London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh. The introduction of these hotels is anticipated to enhance OYO’s presence significantly in the premium segment.
The new strategy was declared during the Nasscom delegation’s visit to the UK. This event was organized by the UK Department of Business and Trade and highlighted the importance of tech startups in bolstering Indo-UK trade relations. Rajesh Nambiar, President of Nasscom, commented on the progress, stating that India’s tech startup ecosystem has become a global force, thereby driving innovation and economic growth on a worldwide scale.
Looking ahead, OYO’s parent company, Oravel Stays Limited, is set to solidify its entry into the premium market with the launch of SUNDAY Lansbury Heritage in Canary Wharf, a pivotal location in London’s hospitality scene.
This planned investment by OYO exemplifies the company’s commitment to enhancing its portfolio within the UK while contributing significantly to the local economy through job creation and strengthened tourism infrastructure. With the integration of several coveted European brands, OYO aims to cater to a broader customer base and adapt to evolving hospitality trends.
