Travel technology company OYO has announced an investment of Rs5.39bn ($61.73m) in the UK hospitality sector over the next three years to expand its premium hotel portfolio.
According to OYO's statement, this strategic move is expected to create approximately 1,000 jobs within the industry.
The company is shifting its focus towards the premiumisation of its portfolio in the UK, with an emphasis on acquiring inventory and securing management contracts and long-term leaseholds.
It is currently in advanced talks with several hotel chains and real estate firms for potential asset management transactions.
OYO UK country head Puneet Yadav said: "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.”
The investment was revealed during the Nasscom delegation to the UK, an event organised by the Department of Business and Trade.
Nasscom president Rajesh Nambiar said: "Proud to see tech startups like OYO strengthening trade ties between both the nations, playing a crucial role in increasing the bilateral trade from $42bn to $50bn and beyond."
OYO has established a strong presence in the UK with over 200 hotels, primarily in the budget segment, across 65 cities.
The company has recently declared its intention to launch more than 40 self-operated hotels through leasehold contracts within the current financial year. OYO has so far incorporated 18 hotels under this new business model and intends to incorporate an additional 22 properties in Birmingham, London, Manchester, Glasgow, Liverpool, Bristol, Edinburgh and Cardiff.
