India’s Oyo will invest $335 million in European vacation rental push
OYO CEO Ritesh Agarwal
The India-based budget hotel start-up is planning a major investment in both the region and the vacation home rental business.
The India-based budget hotel booking start-up Oyo has big plans.
Oyo will soon invest roughly $335 million in its vacation home rental business, with an eye toward expanding its own footprint within Europe.
The idea is possibly to compete with the global giant, Airbnb, which is actually one of Oyo’s investors.
Oyo still has a long way to go, but these latest moves are a strong signal of the fast-growing company’s plans.
Oyo’s big moves
Oyo, which is a Gurgaon-based start-up, acquired the Amsterdam-based holiday rental company Leisure in May this year. Shortly afterwards, Leisure was rebranded as Oyo Vacation Homes.
The company has said its goal is to turn Oyo Vacation Homes into the destination for “top-notch” holiday experiences as well as into the “partner of choice” for homeowners.
The new capital will go into “strengthening the relationship with homeowners and enabling them with the resources required to deliver chic hospitality experiences,” and building the largest vacation rental management service business in Europe, managed under the OYO Home, Belvilla, Danland and Dancenter brands.
“We are focusing on enhancing our customer proposition to not just families but new-age millennials and young executives, traveling for business or leisure, including consumers from newer geographies who travel to Europe from across the world including US, Asia, China and the Middle East,” Tobias Wann, CEO of OYO Vacation Homes, said in a prepared statement.
Oyo’s rapid growth trajectory
For those who are unfamiliar, Oyo claims to be the world’s third-biggest and fastest-growing hotel chain.
Given that Oyo operates more than 23,000 hotels and 125,000 vacation homes with 1 million rooms spread throughout 80 countries, that’s a reasonable claim.
The company also says that Oyo Vacation Homes has doubled its growth since it acquired Leisure in May.
Leisure, which is officially branded as @Leisure, reports that it has business from 2.8 million travellers annually from 118 countries. Currently, its footprint in Europe covers 115,000 homes, adding to 300,000 rooms globally.
Europe’s vacation rental market is slated to be worth $18.6 billion this year, according to estimates, which means it is growing at between 4% and 8% annually.
Oyo is also working to expand its business by entering the co-working spaces market and plans to invest $300 million in expanding its U.S. footprint, too.
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