Budget hotel chain operator Oyo has announced its intention to expand its UK presence with plans to increase its number of hotels to over 200 by the end of this year.
As part of this expansion, Oyo will be adding more than 50 properties to its portfolio in the country by 2023, including in Leeds, Brighton, and Plymouth.
Oyo is currently in advanced-stage negotiations with over 30 hotels as it plans to bring more hotels into its platform this year, said Puneet Yadav, head of Oyo UK.
The company presently operates over 150 small hotels in 65 cities throughout the UK, with Otterburn, Folkestone, Worcester, Swansea, Crewe, Kidderminster, Solihull, Peterhead, and Boston as its latest additions.
In 2022, the company’s UK operations generated revenue that surpassed 2019 levels, with a 140 percent increase from 2021. Additionally, Oyo observed a 50 percent rise in revenue per available room compared to 2021.
Last year, the company expanded its platform in the country by adding 40 hotels. London, Birmingham, Torquay, Great Yarmouth and Manchester are its top markets in UK, according to Oyo.
The company currently has 27 hotels in London region on its platform and 38 in the Midlands region.
Talking about the interest from hotels owners, Gautam Swaroop, CEO of OYO International, said, “Our result-oriented tech stack has been a draw for many entrepreneurs in the UK who are looking to improve and scale their hotel business,”
Swaroop said the expansion would enable many small businesses in the region to manage their business with ease.
Oyo has presence in over 35 countries globally. It owns a vacations home business in the European Union called Oyo Vacation Homes, which operates legacy brands such as DanCenter and Belvilla.
Strengthening its portfolio as a full-stack vacation homes provider, last year the company acquired Croatia-headquartered Direct Booker and Denmark-based vacation rental operator — Bornholmske Feriehuse.
Rating agency Moody’s Investors Service stated this week that Oyo is expected to maintain sufficient liquidity buffers to sustain its operations until it becomes cash flow positive over the next 12 to 18 months, supported by a robust recovery in travel demand and cost optimization measures.