OYO’s GBP 50million power move: How the hospitality giant is shaping future of UK’s hotel scene

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Global hospitality technology firm OYO has announced a GBP 50 million investment plan to expand its premium hotel portfolio in the UK over the next three years. The initiative aims to generate 1,000 direct and indirect jobs while reinforcing OYO’s strategic shift toward premiumization in one of its key international markets.

Strategic Expansion in Premium Hospitality

OYO, which currently operates over 200 properties across 65 UK cities, is accelerating its focus on premium accommodations through long-term leasehold agreements and management contracts. This move signals a significant evolution from its established budget-hotel model towards higher-end offerings, aligning with global consumer preferences for enhanced hospitality experiences.

The company is in advanced discussions with leading hotel chains and real estate firms to secure asset management deals, ensuring a steady pipeline of premium properties. In 2024, OYO’s parent company, Oravel Stays Limited, marked its UK premium segment debut with the launch of SUNDAY Lansbury Heritage in Canary Wharf.

Puneet Yadav, OYO UK Country Head, emphasized the company’s dual approach to growth: “OYO has built a strong presence in the UK since entering the market in 2018. While we remain committed to the budget segment, our focus is now expanding premium properties through leasehold agreements and management contracts. Additionally, we plan to introduce several of our well-established European brands to the UK market, broadening our offerings to cater to evolving consumer demands.”

Strengthening UK’s Hospitality Sector

The investment was announced during the Nasscom delegation to the UK, organized by the UK’s Department of Business and Trade. The initiative aligns with the UK government’s ‘Showcase Britain’ campaign, aimed at bolstering the country’s tourism infrastructure and economic growth.

Poppy Gustafsson, UK Minister for Investment, praised the development, stating: “OYO’s investment in premium hotels strengthens our tourism infrastructure and contributes to our broader economic goals. Their expansion supports our efforts to attract international travelers and create jobs, reinforcing the UK as a premier global destination.”

Expanding the Premium Portfolio

OYO plans to open over 40 premium self-operated hotels through leasehold contracts within this financial year. The company has already onboarded 18 hotels under this model and is on track to add 22 more in key cities, including London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.

OYO’s UK operations are strategically clustered in major metropolitan areas such as London, Manchester, Birmingham, Cardiff, and Brighton. The transition towards premium properties reflects OYO’s broader global strategy of upgrading its inventory and diversifying its hospitality offerings to meet shifting market demands.

OYO’s Global Footprint and Recent Acquisitions

Founded in India in 2012, OYO has expanded rapidly across Europe, the U.S., and Latin America. The company’s aggressive expansion strategy was underscored in December 2024 with its $525 million acquisition of G6 Hospitality, the operator of Motel 6 and Studio 6, from Blackstone Real Estate. The deal added 1,500 franchised hotels across the U.S. and Canada to OYO’s portfolio, significantly strengthening its North American footprint.

SoftBank remains OYO’s largest shareholder with a 46.62% stake, while founder Ritesh Agarwal retains 33.15% ownership. The company continues to focus on strategic acquisitions, operational efficiencies, and branding initiatives to cement its position as a global hospitality leader. As OYO doubles down on its premiumization strategy in the UK, the investment is set to reshape the country’s hospitality landscape, driving innovation and enhancing visitor experiences in key tourism hubs.

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