Oyo to open 40 new UK hotels under leasehold contracts

Hospitality technology company Oyo has revealed plans to open 40 new hotels in the UK by the end of the fiscal year.

Oyo operates 200 hotels in the UK across more than 65 cities, including London, Birmingham, Manchester, Torquay and Great Yarmouth, which are its highest-performing markets.

It entered the UK market in 2018 with aims to develop more than 5,000 rooms within 18 months of launching.

The business intends to launch these self-operated properties through flexible leasehold contracts ranging between three and 15 years, which it has already done with 11 hotels.

Oyo expected each of these hotels to generate “approximately £1.5m in annual revenue”.

Target cities include London, Birmingham, Manchester, Leeds, Bristol, Cardiff and Edinburgh.

It comes after the group announced plans to acquire G6 Hospitality, the economy lodging franchisor and parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525m (£405m).

Oyo launched in the US in 2019 and operates more than 320 hotels in 35 states.

Globally, it has properties in 35 countries and also owns the Oyo Vacation Homes (OVH) in Europe, which operates under brands such as DanCenter and Belvilla.