After strengthening its position in the United States with the acquisition of G6 Hospitality (Motel 6, Studio 6), OYO has announced a €57.5 million investment in the United Kingdom over three years to expand its portfolio of premium hotels, while consolidating its presence in the budget segment.
A hybrid strategy: from franchising to diversified expansion
OYO initially grew through a franchise model, allowing it to quickly establish itself as a key player in the budget hospitality sector—first in India, where it was founded, and then globally. Today, the group is implementing a hybrid approach, combining franchising, management contracts, and long-term leases to accelerate its expansion in the UK market.
Already operating over 200 budget hotels in 65 British cities, OYO is now focusing on strategic diversification to strengthen its presence in the premium segment. The company aims to open 40 new premium hotels, with 18 contracts already signed and 22 in development, in key cities such as London, Manchester, Birmingham, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh.
Through management contracts, leases, and even acquisitions, OYO plans to introduce its European brands, such as OYO Townhouse and Collection O, to broaden its offerings and attract a more diverse clientele.
The rise of premium hospitality: launch of “Sunday” in the UK
Oravel Stays, the parent company of OYO Hotels & Homes, has begun expanding its premium hotel brand “Sunday” with the opening of its first property, Sunday Lansbury Heritage, in Canary Wharf, London. This launch marks the brand’s debut in the UK, following its expansion in India, where it aims to reach 25 properties by March 2025.
Oravel Stays has also partnered with Sojo Stays to introduce Belvilla by OYO in the UK, adding over 300 premium apartments and homes in major cities across the country.
A return to the global top 10
Backed by investors including Japan’s SoftBank, OYO has stabilized its financial situation and is expanding internationally once again. In September 2024, its G6 Hospitality acquisition added 1,479 hotels and 123,555 rooms to its network, bringing its total portfolio to 18,923 hotels and 554,753 rooms. With this growth, OYO has re-entered the global top 10 hotel groups.
Institutional support and a promising future
This investment was announced during the Nasscom delegation’s visit to the UK, organized by the UK Department for Business and Trade. Baroness Poppy Gustafsson, UK minister for investment, welcomed the initiative, stating that it would “help boost the economy and strengthen the country’s tourism infrastructure.”
Rajesh Nambiar, president of Nasscom, also emphasized the significance of Indian tech startups in UK-India trade, contributing to an increase in bilateral trade from €42 billion to €50 billion and beyond.
Photo credit: The Lansbury Heritage A Sunday Hotel – Canary Wharf
