OYO has announced plans to invest £50 million (approximately Rs. 536.95 crore) in the UK over the next three years, focusing on expanding its premium hotel portfolio.

The company is shifting its strategy towards premiumization by acquiring high-end properties and securing long-term leases and management contracts. OYO is also in advanced discussions with major hotel chains and real estate firms for asset management deals.

According to a press release, this investment is expected to create 1,000 direct and indirect jobs over the next three years and attract more international travelers, boosting the local hospitality industry.

This announcement follows OYO's recent Rs. 650 crore (approximately $65 million) funding from Redsprig Innovation Partners, an affiliate of its founder. Last year, Ritesh Agarwal also led a $175 million investment through his Singapore-based fund, Patient Capital.

“OYO entered the UK market in 2018 and has expanded to over 200 properties across 65 cities. While it initially catered to the budget segment, the focus is now on premium expansion through leasehold and management contracts. The company also plans to introduce popular European brands in the UK,” said Punit Yadav, OYO’s UK country head.

The company recently revealed plans to launch over 40 premium self-operated hotels this financial year. It has already onboarded 18 hotels and plans to add 22 more in key cities such as London, Birmingham, Manchester, Liverpool, Glasgow, Bristol, Cardiff, and Edinburgh. In 2023, OYO's parent company entered the UK’s premium segment with the launch of SUNDAY Lansbury Heritage in Canary Wharf.

For FY24, OYO reported revenue of Rs. 5,389 crore, slightly down from Rs. 5,464 crore in FY23. However, by cutting overall expenses by 16%, the company achieved a net profit of Rs. 230 crore, marking a turnaround in its financial performance.