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Global hospitality tech group OYO has plans to invest £50m in the UK over the next three years, with a focus on expanding its premium hotel portfolio in the country.
This investment is expected to support 1,000 direct and indirect jobs over the next few years and attract more international travellers.
In what is a strategic shift for the group, OYO is actively pursuing the ‘premiumisation’ of its UK portfolio through a multi-pronged approach.
The company is pivoting towards premium inventory acquisition, focusing on securing long-term leasehold and management contracts.
As a result, the company is in advanced stage discussions with several large hotel chains and real estate companies for potential asset management transactions.
The investment was announced on the sidelines of the Nasscom delegation to the UK organised by The Department of Business and Trade, UK.
Minister for investment Baroness Poppy Gustafsson OBE said: “Our mission is to create a strong, stable and pro-business economy, with the UK remaining one of the best destinations in the world for investment.
“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.”
Puneet Yadav, head of OYO UK, added: “OYO entered the UK market in 2018, leveraging a model that had already proven successful in other global markets. Over the years, we have grown our portfolio to over 200 properties across 65 cities, establishing a strong foothold in the region.
“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.”
News follows OYO’s recent announcement of its plans to open over 40 premium self-operated hotels through leasehold contracts in this financial year. It has already onboarded 18 hotels under this model and plans to add 22 more across key cities.
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.
