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.
@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.
“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)
This long-anticipated layoff is the biggest move by Japanese technology conglomerate SoftBank Group Corp, which is providing a $9.5 billion lifeline and will soon own about 80 per cent of WeWork's shares
Hospitality unicorn OYO’s valuation has almost doubled in a year, reaching $10 billion between September 2018 and October 2019, despite significant losses in the financial year ending on March 31.
The losses have reportedly mounted due to the rise in operating expenses fuelled by the company’s aggressive expansion in overseas markets.
The provisional net loss of the company jumped from Rs 360.43 crore in the previous financial year to Rs 2,384.69 crore this year, according to unaudited financials prepared by a valuation expert.
“The numbers are based on a valuation report prepared by OYO’s valuers (not auditors) that includes certain provisional financials for FY 19. It may be pointed out that the valuation parameters such as share prices are based on fair market value and are not reflective of the share premium price,” an OYO spokesperson said in a statement.
“We would like to clarify again that these are not the final audited financials and the same will be issued later by the company along with the annual report that we issue every year and file with the RoC as well,” the spokesperson added.
But this did not reduce the growth in the valuation of the company backed by Japanese billionaire Masayoshi San’s Softbank Vision Fund. The major boost came from the $700 million investment made by OYO CEO Ritesh Agarwal in October this year through RA Hospitality Holdings (Cayman).
OYO announced in October that it would raise $1.5 billion in the Series F funding round, whereby RA Hospitality Holdings will infuse approximately $700 million as primary capital in the company, with the balance $800 million being supplemented by other existing investors.
A significant part of the funds will be diverted towards its growth plans in the US market, and in strengthening the company’s position in the vacation rentals business in Europe, the company said.
Earlier this year, RA Hospitality Holdings received Competition Commission of India approval to invest $2 billion in OYO.
“In order to facilitate this transaction, Lightspeed Venture Partners and Sequoia, are selling part of their shareholding in OYO to help the founder increase his stake while remaining invested and committed to the company’s long-term mission,” OYO said.
OYO had raised over $1 billion in its last financing round, announced in September 2018, led by SoftBank through SoftBank Vision Fund, with participation from existing investors Lightspeed Venture Partners, Sequoia and Greenoaks Capital and supported by new strategic partners like Airbnb.
OYO is present in over 80 countries. As per the company, it witnessed “3.8x” year-over-year revenue growth in August 2019.
However, the company’s growing losses provoke comparison with the struggling co-sharing workspace company WeWork which recently laid off 2,400 employees following its failed attempt to go public.
This long-anticipated layoff is the biggest move by Japanese technology conglomerate SoftBank Group Corp, which is providing a $9.5 billion lifeline and will soon own about 80 per cent of WeWork’s shares. (IANS)