Oyo's new era: What’s behind dollar 50 million premium hotel push?
The investment is expected to support 1,000 jobs over the next three years in the UK hospitality sector, OYO said in a statement.
Travel tech unicorn OYO on Tuesday said it plans to invest 50 million pounds (Rs 539.57 crore) in the UK over the next three years, primarily to focus on expanding its premium hotel portfolio. The investment is expected to support 1,000 jobs over the next three years in the UK hospitality sector, OYO said in a statement.
OYO is actively pursuing premiumization of UK
In a significant strategic shift, OYO is actively pursuing premiumization of its UK portfolio, by pivoting towards premium inventory acquisition, focusing on securing long-term leasehold and management contracts. The company 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," said the UK Minister for Investment Baroness Poppy Gustafsson OBE in the statement. Puneet Yadav, Country Head - OYO UK said, OYO entered the UK market in 2018, leveraging a model that had proven successful in other global markets.
OYO strengthening trade ties UK and India
"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 on the sidelines of the Nasscom delegation to the UK organized by The Department of Business and Trade, UK. Appreciating the role being played by tech startups in strengthening the Indo UK trade, Rajesh Nambiar, President Nasscom said, "India's tech startup ecosystem has evolved into a global force, driving innovation and economic growth beyond its borders.
oyo plans to open over 40 premium self-operated hotels
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". 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.
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