India’s largest hotel company is in the process of purchasing a European competitor. This is because the company is planning to expand its business and become a market leader.
OYO is paying €369.5 million ($415 million) for @Leisure Group a company based in Amsterdam. The company Axel Springer announced that it will receive €180 million ($202 million) for the 51% stake. The deal is likely to finalize in June this year.
The European vacation rental group has almost 30,000-holiday homes across 13 countries, and additional 85,000 properties across 50 countries under a subscription-based home management service.
OYO is currently focusing on acquiring the company so as to ensure its growth. The aim of the company is to become a global real estate brand and maintain its leadership in the hospitality industry.
Furthermore, this will help OYO grow in terms of presence. The company will be competing with Airbnb which is known for short-term home rental. The company invested USD 200 million into the Indian company the previous month. The startup was valued at USD 5 billion in the year of 2018. Presently, Japan’s Softbank (SFBTF) is the largest investor.
OYO started 5 years back and is a platform that books budget hotels across India. It has almost half a million room in other countries like China, Malaysia, the United Kingdom, and Indonesia. It has stated that it is one of the top-5 hospitality chains across China. In China, it has almost 5,000 hotels across 280 cities.
Headquarters of the company is in Gurgaon. OYO mentions that is speedily growing in comparison to the top three hotel chain. The company is focusing on having added rooms than global forerunner Marriott (MAR) by 2023.
Presently, Marriott is also trying to enter into home hire industry. The company is in the process of launching a new Airbnb-like service. The company is launching the venture by the name of Homes and Villas by Marriott International.