Hospitality company OYO on Tuesday said it is looking to invest 50 million pounds in the UK over the next three years and support over 1,000 jobs. Expanding its presence outside India, the company said in a statement that it would be focusing on growing its portfolio of premium hotels, and securing long-term leasehold and management contracts.
Moreover, OYO is currently in advanced discussions with multiple large hotel chains and realty firms for potential asset management transactions. OYO entered the UK market in 2018.
Speaking on the investment and expansion in the UK market, Puneet Yadav, Country Head, OYO UK said, “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.”
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Additionally, the company is also planning to launch several of its popular European brands to the UK market, Yadav said.
OYO currently has more than 200 hotels mostly in the budget segment in 65 cities in the UK with London, Manchester, Birmingham, Cardiff and Brighton, being the primary clusters.
The investment was announced on the sidelines of the software industry body Nasscom’s delegation to the UK, organised by the UK’s Department of Business and Trade.
“Proud to see tech startups like OYO strengthening trade ties between both the nations, playing a crucial role in increasing the bilateral trade from $42 billion to $50 billion and beyond. By building on the legacy of excellence set by Indian IT industry and tech startups in the UK, this exemplifies the next wave of India’s entrepreneurial impact on the world stage,” said Rajesh Nambiar, President, Nasscom.
Expanding its global presence, OYO in December last year had completed its acquisition of G6 Hospitality, operators of the iconic Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million. The deal had added around 1,500 franchised hotels across the US and Canada to OYO’s portfolio, significantly expanding its North American portfolio.
IPO-bound company, which is reportedly working on filing its draft red herring prospectus (DRHP) in the first quarter of FY26, had recorded its first-ever net profit at Rs 229 crore in FY24 with adjusted Ebitda growing by 215 per cent to reach nearly Rs 877 crore in FY24, up from about Rs 277 crore in FY23.
