OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK

OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK

SUMMARY

OYO plans to open over 40 premium self-operated hotels through leasehold contracts within the current financial year

This investment is expected to create approximately 1,000 direct and indirect jobs, contributing positively to the local economy and hospitality sector

It is pertinent to note that OYO is shifting its strategy to focus on premium hotel offerings rather than just budget accommodations

Doubling down on its premium hotel portfolio in the UK, hospitality giant OYO has announced its plans to invest £50 Mn (INR 448.36 Cr) in the UK over the next three years. 

This investment is expected to create approximately 1,000 direct and indirect jobs, contributing positively to the local economy and hospitality sector.

OYO UK Country Head Puneet Yadav said: “OYO entered the UK market in 2018, leveraging a model that had already 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.”

It is pertinent to note that OYO is shifting its strategy to focus on premium hotel offerings rather than just budget accommodations. This involves acquiring premium inventory through long-term leasehold and management contracts.

As a result, it plans to open over 40 premium self-operated hotels through leasehold contracts within the current financial year. They have already onboarded 18 hotels under this model and aim to add 22 more in key cities.

OYO currently operates over 200 hotels in the UK, predominantly in the budget segment, across 65 cities including major hubs like London, Manchester, Birmingham, Cardiff, and Brighton. 

Last year, OYO’s parent company, Oravel Stays launched its first premium hotel, SUNDAY Lansbury Heritage, in Canary Wharf, marking a significant step into the upscale market.

OYO has opened its premium hotels across various regions globally, including regions like US, India, Thailand and UAE among others. 

To fund further expansion, the company last month raised INR 550 Cr (about $65 Mn) from its founder Ritesh Agarwal’s Redsprig Innovation Partners. 

In December 2024, Nuvama Wealth & Investment Limited (formerly Edelweiss Securities) acquired OYO shares worth INR 100 Cr on behalf of a consortium of family offices, pegging the company at $4.6 Bn valuation. 

Founded in 2012 by Ritesh Agarwal, OYO is a hospitality startup that claims to offer over 40 integrated products and solutions to patrons who operate more than 157K hotels and home storefronts in more than 35 countries, including India, Europe, and Southeast Asia.

On the financial front, OYO turned profitable in the financial year 2023-24 (FY24). It posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year. However, its operating revenue remained almost flat during the year under review.

Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year.

The company also maintained its profitability in the first two quarters of the ongoing financial year. It reported a profit of INR 158 Cr in Q2 FY25 and INR 132 Cr in Q1 FY25.

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK-Inc42 Media
OYO Earmarks Over INR 448 Cr To Fuel Its Premium Hotel Portfolio In UK-Inc42 Media
You’re in Good company