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OYO to invest £50 Million in UK for premium hotel expansion

Travel tech unicorn OYO announced on Tuesday its plans to invest £50 million (Rs 539.57 crore) in the UK over the next three years, aiming to expand its premium hotel portfolio. According to a company statement, this investment aims to create 1,000 jobs in the UK hospitality sector during this period.

OYO is making a strategic shift by prioritizing the premiumization of its UK portfolio, focusing on acquiring high-end properties through long-term leasehold and management contracts. Additionally, the company is in advanced discussions with major hotel chains and real estate firms for potential asset management deals.

“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 of OYO UK, stated that the company entered the UK market in 2018, adopting a model that had already been successful in other international 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 on the sidelines of the Nasscom delegation to the UK, organized by The Department of Business and Trade, UK.

Appreciating the role taken up 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 USD 42 billion to USD 50 billion and beyond”.

OYO operates over 200 hotels in the UK, primarily in the budget segment, spanning 65 cities, with key hubs in London, Manchester, Birmingham, Cardiff, and Brighton.

Recently, the company unveiled plans to launch more than 40 premium self-operated hotels through leasehold contracts within this financial year. So far, it has onboarded 18 hotels under this model and aims to add 22 more across major cities, including London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.

In 2024, OYO’s parent company, Oravel Stays Limited, entered the UK’s premium market by launching SUNDAY Lansbury Heritage in Canary Wharf.

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