OYO to open 40 UK hotels through leasehold contracts

OYO has announced its plans to open a further 40 self-operated hotels in the UK by the end of the financial year through leasehold contracts. 

This expansion aims to ramp up its operations in the UK market, while offering hotel owners a “worry free approach to revenue generation”. 

Under this leasehold programme, OYO UK will take full responsibility for all operational aspects of these properties, including guest bookings, housekeeping, and maintenance. 

In an effort to maximise benefits for its hotel owners, OYO also offers lease periods ranging from three to 15 years, with no minimum entry criteria regarding room numbers or categories.

OYO has already successfully onboarded 11 hotels under this model, and plans to add 29 more across London, Birmingham, Manchester, Leeds, Bristol, Cardiff and Edinburgh. 

Currently, the group’s UK network comprises over 200 hotels across more than 65 cities, with London, Birmingham, Torquay, Great Yarmouth, and Manchester as its top markets.

News comes after OYO recently announced its plans to acquire G6 Hospitality – an economy lodging franchiser and parent company of Motel 6 and Studio 6 brands in the US – from Blackstone Real Estate for $525m (£404m).  

OYO anticipates that each property under this new leasehold model will generate approximately £1.5m in annual revenue.

Gautam Swaroop, CEO of OYO International, said: “We are committed to taking excellent care of these hotel properties. Hotel owners can rest assured that we will fully adhere to lease contract terms, and our impeccable maintenance and upkeep will not just preserve but enhance the value of their assets.”

Puneet Yadav, head of OYO UK, added: “The day-to-day operations, upkeep, and management of a hotel can be a daunting task. By leasing their hotel to OYO, owners can secure a return on their real estate investment while leaving the management to professionals.”