Oyo Hotels & Homes only entered the U.K. market in October 2018, but it has done there what is has done – and is trying to do – in parts of the rest of the world: take over the hospitality space.
Founded in India six years ago by CEO Ritesh Agarwal, in 2018 the group ranked third in HOTELS list of biggest hotel companies by rooms.
In the U.K., it launched with a commitment to invest £40 million (about US$48.6 million) in the region. Now it has more than 2,000 guest rooms among 100 previously independent hotels, and about 275 team members. To put that into context, the United Kingdom division had just five properties and a staff of 25 in December. Oyo locations range from cities like London, Edinburgh and Belfast to smaller towns and beachside resorts.
Contributed by Alicia Sheber
Jeremy Sanders, Head of U.K. for Oyo, says he is driving the local group toward profitability by creating value in sensible ways. “We are utterly focused on hotel-by-hotel performance, because that’s what owners want,” he says. “Our U.K. team brings value to each hotel by concentrating on what needs to be delivered for every line item. If we do that, owners will get results, guests will benefit, and we will make money while contributing to the hotel’s character.”
With the current U.K. portfolio averaging 25 rooms per property, Sanders says Oyo isn’t in the realm of the likes of Premier Inn and Travelodge. Instead, the brand embraces the individuality of smaller properties, investing in their physical and technological infrastructure without homogenizing their appearance. The platform is tailored for the U.K. market with, for example, tech that accommodates guests’ preferences to reserve further in advance versus the tendency in India to book rooms the same day as the stay.
Next up? The U.K. horizon holds ventures into co-working spaces as well as Oyo Homes, the brand’s foray into short-term rentals, serviced apartments and vacation residences. While the Oyo Hotels brand is still very much “front-loaded,” Sanders says it’s on the cusp of profitability in India – the company has yet to turn a profit – and globally, it’s on the path to being in the black. In June, the company announced its expansion into Vietnam and in the U.S. where it already has more than 50 hotels across 10 states and 35 cities, plus a commitment from the brand to invest US$300 million USD in growth.
Some have likened this dark horse to AirBnB for its disruptive capacity, which Sanders finds quite flattering for such a young company.
“We are right on trend. Whether a restaurant, pub, bar or hotel, today, everything is about having an independent spirit. There’s no way we could grow at this rate if we didn’t revel in that.”
