- Oyo has been looking to enter the premium space for quite some time.
- The acquisition will cost up to INR 40 Cr
- Oyo has also bought Hooters Casino Hotel Las Vegas recently
Oyo has been seen as a budget-and mid-segment hotel aggregator in India but now it has entered the four-star hotels’ segment in India with the recent purchase of a 64-suite building in Ahmedabad for an undisclosed amount. Oyo has also partnered with Gurugram-based hospitality firm Mountania Developers for the transaction to redesign the building into a premium hotel by the end of this year.
It seems Oyo wants to remove its tag as a budget- and mid-segment hotels in India. Now, it also wants to cater to business travelers. The company even plans to add more premium and upscale hotels.
Although Oyo didn’t reveal the financial terms of the transaction, it has been estimated at $135 million for the asset. Hooters Casino Hotel will now be rebranded and designed as Oyo Hotel & Casino Las Vegas, the company said in a statement. It provides some 657 rooms across 19 floors and a 35,000 square-foot casino area.
Oyo looks to work with Mountania, which will help acquire assets, while Oyo will leverage its expertise in property on-boarding, redesigning and renovation.
“This (premium) segment holds lots of promises for us given quite a rapid growth of the hospitality industry over the last decade. The global upscale and luxury hotel market is predicted to witness tremendous growth and, at Oyo, we want to successfully leverage this opportunity to enable our guests to experience living the good life, even while traveling for their business purposes,” said chief executive India and South Asia, Aditya Ghosh.
We believe in our deep understanding of Indian consumers and trends. This understanding coupled with our operational and technological capabilities will be a game-changer for us in the upscale segment,” he said.
Oyo has been on a buying spree in the hotels’ asset space for quite some time. In May, it had agreed to acquire Amsterdam-based @Leisure Group from Axel Springer, a media and technology company, for an undisclosed amount.
@Leisure is a vacation-rental company with head office in Europe, that manages holiday homes and holiday parks as well as holiday apartments.
Oyo is aiming for entrance into the five-star and seven-star hotels categories as well. It’s in advanced talks with owners of at least 10 such properties, said one person aware of the matter, requesting anonymity. The premium and luxury properties are across India.
Owned by Oravel Stays Private Limited and based in Gurgaon, Haryana, India, OYO has 450,000 listings in 500 cities in India, China, Malaysia, Nepal, Sri Lanka, United Kingdom, United States, United Arab Emirates, Saudi Arabia, Philippines, Indonesia, Vietnam, and Japan.