Indian hotel chain OYO, backed by Softbank, is continuing its global expansion by introducing the Belvilla by OYO brand to the UK market, marking a major step forward in strengthening its portfolio of premium holiday rentals.

A strategic partnership with Sojo Stays

For this expansion, OYO has partnered with Sojo Stays, a luxury flat rental chain founded in 2019 by James and Stephanie Murphy. Sojo Stays manages over 250 flats in key UK cities such as London, Milton Keynes, Birmingham, Sheffield and Leeds, as well as properties in Manchester, Suffolk, Berkshire and the South West of England. The partnership will enable Belvilla to offer a ‘carefully selected collection of homes in prime locations’ in these regions.

Continued growth in the UK and beyond

OYO made its UK market debut in September 2018, with a £40m investment plan and the establishment in ten cities, partnering with budget hotels to develop its franchise model. In October last year, the company launched Managed by OYO in the UK, with plans to add 20 hotels across the country. The programme is particularly flexible, with no strict entry criteria, and allows hotel owners to negotiate bespoke partnerships lasting between three and 15 years.

In 2023, OYO reported a 140% increase in UK revenues, exceeding pre-pandemic 2019 levels. Until last year, OYO had over 150 small hotels in more than 65 cities across its UK network. In addition, OYO has added 40 hotels to its UK portfolio in 2022.

A European and global expansion strategy

OYO is no stranger to the European market. The company already manages over 50,000 holiday homes in more than 20 European countries, including France, Germany, Spain, Italy, the Netherlands, Belgium and Austria. This European presence was further strengthened by the acquisition of Croatian holiday rental franchise agency Direct Booker for $5.5 million in May 2022 and Nordic holiday home operator Bornholmske Feriehuse three months later.

In addition, Belvilla by OYO has recently expanded into Asia, marking its entry into Indonesia with holiday homes in Ubud, Nelayan Beach, Canggu Beach and Pandawa Beach. The company's goal is to reach 500 Belvilla holiday homes by the end of 2024.

A past marked by the pandemic and strategic diversification

Formerly the world's No. 2 hotel group, OYO has enjoyed a spectacular rise in the rankings, reaching No. 2 in 2020 with more than one million rooms. However, the Covid-19 pandemic hit the company hard, reducing its room supply by 54% in 2020. In 2021, it lost a further 110,000 rooms, falling back to eighth place in the world.

In 2023, OYO will continue to record negative growth, with a decline in its global stock of around -12.10%, or 52,187 fewer keys than in 2022. The group continued to lose rooms in various markets, particularly China, where it recorded a 65% decline. As a result, OYO is now ranked tenth in the world with 16,128 hotels and 379,151 rooms in 2023.

Despite these challenges, OYO has demonstrated resilience and adaptability in the face of global market challenges, including continued expansion in the UK and strategic diversification.