India’s leading hotel startup OYO is now going to buy a European rival. After this, the company will become the global market leader.
OYO was started five years ago in India. Initially, it was a platform to book budget hotels in India. But now, it has nearly half a million rooms across eight countries in the World comprising of China, Indonesia, the United Kingdom and Malaysia.
In China, it is one of the top five hospitality chains as claimed by the company. It has more than 5000 hotels in 280 countries. It has its HQ in Gurgaon, India.
Reportedly, OYO is paying $415 million to acquire Amsterdam based @Leisure Group. German media company Axel Springer said it would receive $202 million for its 51% stake. Expectedly, the deal will close in June 2019.
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Leisure Group operates around 30,000-holiday homes in 13 countries. Also, it operates 85,000 properties across 50 countries. It handles all this under a subscription-based home management service.
Notably, it also increases the presence of OYO in the short term rental space led by Airbnb. Last month, it poured about $200 million in the Indian Company.
OYO said that the acquisition will help achieve its goal of becoming a global real estate brand while maintaining leadership in the hospitality industry.
In 2018, the startup was valued at $5 billion. Additionally, Japan’ SoftBank was one of its biggest investors.
The company says it is growing faster than the world’s top three hotel chains combined and aims to have more rooms than global leader Marriott by 2023.
