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OYO has announced plans to open 40 self-operated hotels in the UK by the end of the fiscal year through leasehold contracts.
The significant expansion aims to ramp up its operations in the UK market while offering hotel owners a worry-free approach to revenue generation. OYO has already successfully onboarded 11 hotels under this model and plans to add 29 more across key cities including London, Birmingham, Manchester, Leeds, Bristol, Cardiff, and Edinburgh.
Currently, OYO’s UK network comprises over 200 hotels across more than 65 cities, with London, Birmingham, Torquay, Great Yarmouth, and Manchester as its top markets.
The news follows the announcement of OYO’s plans to acquire G6 Hospitality, the leading economy lodging franchisor and parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million in an all-cash transaction. OYO has steadily expanded its footprint in the United States since its launch in the region in 2019 and currently operates over 320 hotels across 35 states. Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6.
OYO will leverage its comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
Under this leasehold programme, OYO UK will take full responsibility for all operational aspects of these properties, including guest bookings, housekeeping, and maintenance. To maximize benefits for hotel owners, OYO offers flexible lease periods ranging from 3 to 15 years, with no minimum entry criteria regarding room numbers or categories.
Gautam Swaroop, CEO, OYO International, commented: “We are committed to taking excellent care of these hotel properties. Hotel owners can rest assured that we will fully adhere to lease contract terms, and our impeccable maintenance and upkeep will not just preserve but enhance the value of their assets.”
OYO anticipates that each property under this new leasehold model will generate approximately £1.5 million in annual revenue.
Puneet Yadav, Head, OYO UK, added: “The day-to-day operations, upkeep, and management of a hotel can be a daunting task. By leasing their hotel to OYO, owners can secure a return on their real estate investment while leaving the management to professionals.”
Globally, OYO maintains a presence in over 35 countries and owns OYO Vacation Homes (OVH) in Europe, which operates established brands such as DanCenter and Belvilla.
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