Oyo’s Bold Pivot Transforming the UK Hospitality Landscape with Premium Acquisitions

Dutch hospitality technology company Oyo is signaling a major strategic shift in Europe, with plans to invest approximately €57.5 million in the United Kingdom over the next three years. In a move that could reshape the local market, Oyo is actively pursuing acquisitions of premium hotel brands as part of a broader strategy to transition from budget accommodation to a more diversified, quality-focused offering.

Once renowned for its expansive network of over 200 budget hotels across 65 cities, including key hubs such as London, Manchester, Birmingham, Cardiff, and Brighton, Oyo is now setting its sights on higher-end properties. “Oyo entered the UK market in 2018, leveraging a model that had already proven successful in other global markets,” explained Puneet Yadav, Country Head for Oyo UK. “While we continue to serve the budget segment, our focus is shifting towards 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.”

This bold transformation is part of a broader strategy to reinvent Oyo’s identity on the global stage. Last month, the company secured approximately €59 million in funding from founder Ritesh Agarwal’s Redsprig Innovation Partners. In December, Nuvama Wealth & Investment Limited (formerly Edelweiss Securities) bolstered this vision by acquiring Oyo shares worth roughly €11 million on behalf of a consortium of family offices.

Across the Atlantic, Oyo’s international expansion has been equally aggressive. In the United States, the company made headlines by acquiring the Motel 6 and Studio 6 brands from Blackstone for about €490 million last year. In Europe, Oyo has also been busy: the Paris-based Checkmyguest was acquired for roughly €25 million in 2024, while earlier deals include the Croatian vacation rental agency Direct Booker for approximately €5.1 million, and the Nordic holiday home operator Bornholmske Feriehuse in 2022. Even before the COVID-19 pandemic, Oyo’s purchase of Amsterdam-based @Leisure Group for around €386 million in 2019 cemented its presence in the European market.

Oyo’s current transformation comes at an opportune time for the UK tourism sector, which is experiencing a resurgence. The latest Oyo Travelopedia Report noted an 18% year-on-year increase in bookings, with cities like London, Plymouth, and Sheffield showing significant growth, and coastal areas such as Eastbourne witnessing a surge in tourist activity. Meanwhile, a January report from the RSM Hotels Tracker revealed that consumers are increasingly “trading up” in their accommodation choices, favoring luxury and mid-market hotels over traditional budget options.

This reinvention is not just a financial play; it’s a calculated response to evolving market trends. As global travel rebounds and consumers demand more upscale experiences, Oyo’s pivot to premium properties could unlock significant value and reshape the competitive landscape. The move is expected to support around 1,000 direct and indirect jobs in the UK alone, further bolstering the economy as the country emerges from a period of uncertainty in the hospitality sector.

For investors, this transformation offers a compelling narrative. Oyo’s renewed focus on quality and strategic acquisitions positions it to capture a larger share of the high-end market, a segment long dominated by established local players. As major European cities and destinations continue to attract international tourists, the timing couldn’t be better for a company willing to invest in innovation and transformation.

In an era where the hospitality industry is being reshaped by shifting consumer preferences and a post-pandemic rebound, Oyo’s ambitious strategy could serve as a blueprint for similar companies worldwide. By investing heavily in premium properties and leveraging its global expertise, Oyo is not only redefining its own future but also setting a new standard for the entire sector.

As the UK tourism market gears up for a vibrant comeback, all eyes will be on Oyo to see if its bold investments and strategic acquisitions can turn this vision into reality—and cement its place as a leading force in the new age of hospitality.

Janice Wellborn
UCW Newswire