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OYO, a travel tech company, announced it will invest 50 million pounds (Rs 539.57 crore) in the UK over the next three years to expand its premium hotel offerings.
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This investment will help create 1,000 jobs in the UK hospitality sector. OYO is shifting its focus to premium properties by acquiring more upscale hotels and securing long-term lease and management contracts.
The company is also in talks with major hotel chains and real estate firms for possible partnerships.
The UK Minister for Investment Baroness Poppy Gustafsson OBE in the statement said, "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, Country Head - OYO UK said, OYO entered the UK market in 2018, leveraging a model that had proven successful in other global 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,".
The investment was announced during the Nasscom delegation’s visit to the UK, organized by the Department of Business and Trade, UK.
Rajesh Nambiar, President of Nasscom, praised the role of Indian tech startups in boosting trade between India and the UK. He said, "India's tech startup ecosystem has become a global force, driving innovation and economic growth. Startups like OYO are playing an important role in strengthening trade ties, helping increase bilateral trade from $42 billion to $50 billion and beyond."
OYO currently operates over 200 budget hotels across 65 cities in the UK, with major clusters in London, Manchester, Birmingham, Cardiff, and Brighton.
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This year, OYO plans to open more than 40 premium self-operated hotels through leasehold contracts. So far, 18 hotels have been onboarded, and the company plans to add 22 more in cities like London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.
In 2024, OYO's parent company, Oravel Stays Limited, entered the UK’s premium segment with the launch of SUNDAY Lansbury Heritage in Canary Wharf.
About OYO
OYO is a global platform that supports entrepreneurs and small businesses with hotels and homes by providing technology products and services to increase revenue and streamline operations, offering customers easy-to-book, affordable, and reliable accommodation worldwide.