OYO has announced plans to expand its UK operations by adding a total of 200 hotels by the end of 2024, more than doubling its current portfolio.
The news comes following what the group called a “strong performance in 2023 and early 2024”, following the launch of its premium holiday home offer, Belvilla by OYO, last month in collaboration with Soho Stays.
According to a recent Smith Travel Research (STR) report, OYO UK has outpaced the industry’s average RevPAR growth – while the sector saw a 7% increase in RevPAR, OYO UK achieved 10% growth in 2024 compared with the previous financial year.
In addition, London, Manchester and Birmingham emerged as the top-performing markets, driving OYO’s steady growth in UK revenue and RevPAR.
OYO operates via various models in the UK market, catering to different segments of the hospitality industry, including hotels on commission, leasehold, urban homes, hostels and even caravan parks.
Gautam Swaroop, CEO of OYO International, said: “By June 2023, we had added 49 hotels to our portfolio – this year that figure is 89, demonstrating OYO’s strong rate of growth in the UK during the last 12 months. We have increased revenue on the back of our ability to innovate and adapt, while focusing on our core markets and leveraging our tech and data capabilities.
“Our portfolio has continued to perform well, driving revenue both for OYO and hotel owners who are part of our network in the UK, and we look forward to building our UK portfolio further in the coming months.”
Puneet Yadav, head of OYO UK, added: “70% of hotels that join the OYO network see an increase in their Average Daily Rate and report a 25% higher ADR year-on-year in comparison to the budget hotel segment.
“This is largely due to OYO’s innovation in technology and smart use of data, providing an AI-powered dynamic pricing engine and listing properties on more than 1500 global online travel agency platforms. Smart use of tech will be central to OYO’s expansion as we continue to build our UK portfolio.”
OYO has a presence in over 35 countries and owns a vacation home business in Europe called OVH (OYO Vacation Homes), which operates legacy brands such as DanCenter and Belvilla, and currently operates over 185 hotels across its UK network.