OYO, a global hospitality brand, has announced a £50 million investment in the United Kingdom over the next three years. The move marks a strategic shift towards premium hotel offerings and aims to improve the quality of hospitality services across the country. The expansion is expected to generate approximately 1,000 jobs, contributing to the growth of the UK’s tourism and hospitality industry.
Key Takeaways
OYO plans to invest £50 million over three years to expand premium hotel offerings in the UK, aiming to improve hospitality standards and support economic growth.
- OYO will integrate 18 properties into its new leasing model and aims to add at least 22 more by the end of the fiscal year.
- The investment is expected to generate around 1,000 jobs and aligns with the UK government’s ‘Showcase Britain’ initiative.
- Beyond the UK, OYO has acquired G6 Hospitality for $525 million, adding 1,500 franchised hotels globally.
Expanding premium offerings across major cities
Since entering the UK market in 2018, OYO has built a network of over 200 hotels in 65 cities, including London, Manchester, Birmingham, Cardiff and Brighton. Initially focused on budget accommodations, the company is now expanding its portfolio to include high-end hotels through lease agreements and management contracts.
OYO is currently in discussions with multiple hotel groups and real estate firms to secure new properties. According to Puneet Yadav, OYO’s Country Head in the UK, the company is committed to broadening its appeal.
While we continue to serve budget-conscious travellers, we recognize the increasing demand for premium stays. Our strategy involves securing long-term leasehold agreements and management contracts with upscale properties. Also, we plan to introduce several of our successful European brands to the UK, catering to a wider range of guests
Puneet Yadav
As part of this initiative, OYO has already integrated 18 properties into its new leasing model and plans to add at least 22 more by the end of the fiscal year. Key cities targeted for expansion include London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.
One of OYO’s most notable recent additions is the SUNDAY Lansbury Heritage in Canary Wharf, a premium hotel launched in 2024. The establishment reflects OYO’s new approach to offering high-end accommodations while maintaining affordability for guests.
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Supporting economic growth and job creation
OYO’s investment aligns with the UK government’s ‘Showcase Britain’ initiative, which aims to strengthen the country’s tourism infrastructure and drive economic development. Baroness Poppy Gustafsson, the UK’s Minister for Investment, praised OYO’s commitment to the hospitality industry. 'OYO’s investment in premium hotels will play a crucial role in enhancing our tourism sector, creating jobs and attracting more visitors. This supports our wider goal of making the UK a top destination for international travellers,' she said.
The company’s expansion is expected to create direct and indirect job opportunities across the hospitality sector, including hotel management, customer service, housekeeping, and marketing. By improving hotel standards and attracting more guests, OYO aims to contribute to the long-term sustainability of the UK tourism industry.
Rajesh Nambiar, President of Nasscom, also highlighted the role of businesses like OYO in strengthening trade between India and the UK. 'India’s startup ecosystem is driving global innovation and economic growth. Companies like OYO are not only expanding their footprint but also playing a role in increasing bilateral trade, which has grown from $42 billion to $50 billion in recent years,' Nambiar noted.
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Financial performance and international growth
Despite revenue remaining stable at approximately £510 million in FY24, OYO has maintained financial stability through cost-cutting measures and operational efficiencies. The company continues to prioritize profitability while expanding its portfolio in key markets.
Beyond the UK, OYO has been making significant international moves. In December 2024, the company acquired G6 Hospitality for $525 million. This acquisition added 1,500 franchised hotels globally to OYO’s growing portfolio.
With major shareholders such as SoftBank holding a 46.62% stake and founder Ritesh Agarwal owning 33.15%, OYO remains focused on strategic acquisitions and branding initiatives to strengthen its global presence.
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Strengthening the UK hospitality market
OYO’s £50 million investment is a testament to its confidence in the UK hospitality industry. By introducing more upscale accommodations, the company is responding to shifting market demands while creating employment opportunities and enhancing the guest experience.
As OYO continues to evolve, its focus on premium offerings signals a broader transformation within the hospitality industry. By upgrading hotel standards and broadening its reach, the company is not only strengthening its position in the market but also contributing to the overall growth of the UK’s travel and tourism landscape.