Gurgaon-headquartered budget hotel startup, OYO, has made an acquisition to expand its footprint into Europe as the company has acquired one of the leading vacation rental companies in Europe @Leisure Group from its parent Axel Springer for about $415 million, reported TechCrunch.
Amsterdam-based @Leisure Group (the ‘@’ is a part of its name), through its Belvilla, DanCenter, and Danland brands, offers more than 30,000 fully managed holiday homes across 13 countries in Europe and through its Traum-Ferienwohnungen brand, offers a subscription-based home management service with over 85,000 homes across 50 countries.
Axel Springer, which had a 51% share of @Leisure Group, would be receiving €180 million (~ US$202.35 Mn) in the deal, including the repayment of a shareholder loan of around €60 million (~ US$67.45 Mn), and a spokesperson for OYO confirmed to TechCrunch that the full price was €369.5 million i.e about US$ 415 Mn.
The acquisition will help OYO move a step closer in realizing its vision of becoming a global real estate brand while maintaining leadership in the hospitality industry.
Maninder Gulati, Oyo’s global chief strategy officer, said in a media statement, “With Europe spearheading the vacation and urban home rental trend globally, @Leisure Group is uniquely positioned to capitalize on its experience and insights aided with Oyo’s full stack approach towards building the world’s largest global vacation rentals business.”
“If one were to look at Europe alone, there is an ever-increasing demand for vacation homes with an increasing trend of booking an entire home. Through this acquisition, the size and scale of the opportunity can be immediately unlocked for Oyo’s Homes business. Today, more than 2.8 million holidaymakers from over 118 countries book their holiday every year with @Leisure Group. The combined strength of both brands can scale the opportunity multifold,” he said.
Leisure Hotels Group has its presence in India too and is a major player in Uttarakhand’s hospitality sector. It has portfolio of hotels, resorts, luxury Villa’s & camps in the state.
@Leisure Group is OYO’s fifth acquisition in total and third out of India. The AirBnB-backed company has earlier acquired Innov8 Coworking, Weddingz, Novascotia Boutique Homes and Mumbai-based IoT developer AblePlus.
Last month, AirBnB invested around $150-200 million to pick up stake in Oyo Roomsand valuing the Indian hospitality startup at more than $1 Billion.
Prior to that, Oyo had raised $100 million in February from Star Virtue Investment, an entity controlled by the Chinese cab-hailing giant Didi Chuxing, and in the same month commenced its operations in Japan, through a joint venture (JV) with Yahoo Japan Corporation to form OYO Technology & Hospitality Company, Japan.