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India’s Largest Hotel Chain OYO to Acquire Amsterdam-based @Leisure Group for $415 mn

OYO said the the acquisition will help it move a step closer in realising its vision of becoming a global real estate brand while maintaining leadership in the hospitality industry

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In line with its aim to become a global market leader, India’s largest hotel chain OYO will acquire Amsterdam-based @Leisure Group for $415 million.

OYO on Wednesday said it would acquire @Leisure from Axel Springer, a media and technology company.

@Leisure is a leading vacation rental company in Europe and manages holiday homes, holiday parks and holiday apartments.

“With @Leisure Group, its team and capabilities, we see OYO further its mission of creating quality living experiences for everyday travellers,” Maninder Gulati, OYO’s Global Chief Strategy Officer, said in a statement.

Representational image.

@Leisure Group, 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.

OYO said the the acquisition will help it move a step closer in realising its vision of becoming a global real estate brand while maintaining leadership in the hospitality industry.

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“Through this acquisition, the size and scale of the opportunity can be immediately unlocked for OYO’s Homes business. Today, more than 2.8 mn holidaymakers from over 118 countries book their holiday every year with @Leisure Group. The combined strength of both brands can scale the opportunity multifold,” Gulati said.

“Tobias Wann, CEO, @Leisure Group, will join OYO’s leadership group as CEO, Vacation Homes, OYO Global, and will work with me to turn OYO’s home business into a global by-word for vacation and urban home rentals,” Gulati added. (IANS)

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Aim is to Become World’s Biggest Hotel Chain: Oyo

We are committed to growing the right way, says an Oyo spokesperson

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Oyo
Oyo issued a statement on Saturday following allegations in an article in the New York Times which said the "Softbank Jewel in India" is facing toxic culture and troubling incidents. Wikimedia Commons

Hospitality chain Oyo said on Saturday that it is committed to “growing the right way” by meeting the needs of property owners and guests.

Oyo issued a statement on Saturday following allegations in an article in the New York Times which said the “Softbank Jewel in India” is facing toxic culture and troubling incidents.

“While Ritesh Agarwal’s Oyo aims to be the world’s biggest hotel chain, its growth was fuelled by questionable practices, employees said,” as per the report.

“We are committed to growing OYO the right way — by meeting the needs of property owners and of the guests we serve together. We work hard every day to ensure that our values are upheld by thousands of committed employees around the world, and we are subject to regular external audits to ensure proper compliance and adherence to our Code of Conduct,” an Oyo spokesperson said in the statement.

Oyo
While Ritesh Agarwal’s Oyo aims to be the world’s biggest hotel chain, its growth was fuelled by questionable practices, employees said. Wikimedia Commons

“With regard to complaints of a small section of property owners in India whose payments are disputed, multiple escalation mechanisms exist and we continue to provide resolution,” the statement read.

“We are also investing in technology and in building stronger partner support teams to ensure reconciliations happen faster. We expect all hotel owners to partner in delivering superior guest experience.

“We will also continue to utilise the provisions in our contracts that allow us to incentivise and recognise thousands of owners who consistently deliver high-quality guest experience,” the hotel chain said.

Sources said the instances of holding back payments were incorrect and present a one-sided evaluation of the situation.

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“There is an automated reconciliation for payments transfers in the first week of every month and OYO has committed to an 18 per cent interest pay-out in case of any delays therein, provided there are no discrepancies. We have been engaging with our asset owners on a one to one basis, and to address concerns, if any,” the statement said. (IANS)