Published on : Thursday, May 2, 2019
India’s fast-growing hotel chain Oyo will expand in Europe with the acquisition of an Amsterdam-based vacation rental firm @Leisure. It will buy @Leisure from German media firm Axel Springer for a sum of 369.5 m euro (U.S. dollars 415m; 317.9 m pounds). The Oyo @Leisure deal will help the former to deepen its footprints in Europe, specifically around self-catering home rentals.
Founded by Ritesh Agarwal, Oyo has received funding from Japanese conglomerate Softbank and Airbnb. Last month Oyo secured a ‘strategic investment’ from Airbnb, reportedly valued at U.S. dollars 100m.
As per Oyo Global Chief Strategy Officer Maninder Gulati, the European market is ‘spearheading the vacation and urban home rental trend globally’. He stated that more than 2.8 million holiday-makers from 118 countries already book their holiday every year with @Leisure Group. He opines: “Through this acquisition, the size and scale of the opportunity can be immediately unlocked for Oyo’s homes business.”
@Leisure has approx 115,000 homes, and about 300,000 rooms globally. Some of its sub-brands includes Belvilla, DanCenter, Danland and Traum-Ferienwohnungen. In 2018, it posted Ebitda of more than €24 million.
Oyo operates budget hotels as well as rental homes across countries including India, China, US and UK. The company hopes to expand its reach in the European holiday market with the Oyo @Leisure deal.