In 2024, OYO UK achieved a 15% increase in revenue, reflecting the strength of its business model. By leveraging AI-driven pricing and self-check-in technology, the company has overcome broader market challenges. Here’s a closer look at their strategies and growth in the UK market.

OYO UK’s performance in 2024

OYO’s UK operations have demonstrated impressive growth, posting a 15% increase in revenue for the year, compared to 2023. This growth comes despite the broader market, as indicated by STR, experiencing a decline of 2.8%. 

OYO’s Average Daily Rate (ADR) rose by 2%, and its per room revenue (RevPAR) increased by 4%, while the wider market saw a 4.5% decline. 

“Our continued growth in 2024 demonstrates the strength of our business model and the effectiveness of our approach. By focusing on dynamic pricing and leveraging our AI capabilities, we’ve not only bucked industry trends but accelerated our growth in the UK market.” - Gautam Swaroop, CEO of OYO International

Technology-driven solutions 

A key driver of OYO’s success is its AI-powered pricing engine, which optimizes revenue for its hotel partners. Puneet Yadav, Country Head of OYO UK, highlighted, “Our AI-powered pricing engine continues to drive optimal revenue for our hotel partners, while our automated solutions are helping address key industry challenges like rising operational costs and staff shortages.” 

OYO has also implemented self-check-in technology, which enhances the guest experience while reducing operational burdens for hotel owners. This focus on technology has allowed the company to provide innovative solutions to the UK hotel market, addressing challenges such as operational costs and the need for efficient management. 

Focus on customer satisfaction 

OYO’s commitment to customer satisfaction is evident in its technology-driven approach, with tools like AI-powered chatbots to resolve customer queries quickly. This focus on improving both hotel operations and guest experiences has contributed to the company’s positive performance in 2024. 

The group has more than 200 hotels across 65 cities in the UK, with key clusters in London, Manchester, Birmingham, Cardiff, and Brighton. The company’s ability to boost demand through multiple online travel agents (OTAs) and its own website and mobile app has significantly contributed to increased revenue. 

Expansion plans and future growth 

Looking ahead, OYO has ambitious expansion plans. The company aims to open over 40 premium self-operated hotels in the UK under leasehold contracts within the current financial year. So far, OYO has already onboarded 18 hotels and plans to add 22 more in key cities such as London, Birmingham, Manchester, and Glasgow. 

In 2024, OYO’s parent company, Oravel Stays Limited, made its mark in the UK’s premium segment with the launch of SUNDAY Lansbury Heritage in Canary Wharf, further strengthening OYO’s footprint in the UK hospitality market.