New Delhi, Feb 4 (PTI) – OYO, the travel tech unicorn, announced a major investment of £50 million (approximately Rs 539.57 crore) into the UK market over the next three years, with a focus on expanding its portfolio of premium hotels. The investment aims to strengthen OYO’s presence in the UK hospitality sector and will support the creation of 1,000 new jobs.
As part of a strategic shift, OYO is intensifying its efforts to upscale its offerings in the UK by acquiring premium hotel properties. The company is concentrating on securing long-term leasehold agreements and management contracts with high-end hotels. OYO is also in advanced discussions with major hotel chains and real estate firms for potential asset management deals to further expand its presence.
Baroness Poppy Gustafsson OBE, UK Minister for Investment, welcomed the investment, emphasizing its role in supporting the government’s “Showcase Britain” initiative, which aims to enhance the UK’s tourism infrastructure and drive economic growth. She noted, "OYO's investment in premium hotels will not only strengthen our tourism infrastructure but will also contribute to our broader economic objectives as part of our Plan for Change."
Puneet Yadav, Country Head of OYO UK, highlighted the company’s evolving strategy since its entry into the UK market in 2018. Initially focusing on the budget segment, OYO is now shifting towards premium properties through leasehold and management agreements. "We are committed to expanding in the premium space and plan to introduce some of our popular European brands to the UK market, diversifying our offerings to cater to changing customer demands," said Yadav.
The announcement came during the ongoing Nasscom delegation to the UK, organized by the Department of Business and Trade, UK. Rajesh Nambiar, President of Nasscom, acknowledged the significant role that tech startups like OYO play in strengthening Indo-UK trade ties. He noted, "India's tech startup ecosystem has evolved into a global force, driving innovation and economic growth. It’s exciting to see companies like OYO playing a crucial role in growing the bilateral trade between India and the UK, which is expected to reach USD 50 billion and beyond."
Currently, OYO operates over 200 hotels, primarily in the budget segment, across 65 UK cities, with key clusters in London, Manchester, Birmingham, Cardiff, and Brighton. In line with its expansion strategy, the company recently revealed plans to launch more than 40 premium, self-operated hotels under leasehold contracts in this financial year alone. OYO has already onboarded 18 hotels under this model and plans to add 22 more in major cities such as London, Manchester, Glasgow, Liverpool, Bristol, Edinburgh, and Cardiff.
In a bid to solidify its position in the premium hotel market, OYO’s parent company, Oravel Stays Limited, also marked its entry into this segment in 2024 with the launch of SUNDAY Lansbury Heritage in Canary Wharf, London.
OYO’s move signals a significant shift towards higher-end markets, and the company’s ambitious expansion plans in the UK are expected to reshape the landscape of the country’s hospitality sector.
