Oyo to invest $335m in vacation homes business to expand in Europe

Indian hospitality chain Oyo Hotels and Homes said it has committed to invest 300 million euros (roughly US$335 million) in Oyo Vacation Homes in a bid to expand its presence in Europe.

Photo credit: Oyo

The SoftBank-backed company previously acquired Amsterdam-based Leisure Group in a reported all-cash US$415 million deal and rebranded it to Oyo Vacation Homes. Oyo’s growth strategy for the business is tailored towards offering top-notch holiday experiences for guests and strengthening relationships with homeowners.

To further support its goal of becoming the top vacation rental brand globally, the company plans to expand the footprint of Oyo Homes, Belvilla, and DanCenter brands in Europe.

“We are focusing on enhancing our customer proposition to not just families but [also] new-age millennials and young executives traveling for business or leisure, including consumers from newer geographies who travel to Europe from across the world,” said Oyo Vacation Homes CEO Tobias Wann.

In July, Oyo founder and chief executive Ritesh Agarwal raised his stake in the company through a US$2 billion buyback. The move came after Oyo reached a 4.4x year-on-year revenue growth last month.

Oyo, which claims to be the third-biggest and fastest-growing hotel chain, said its portfolio now includes more than 23,000 hotels, 125,000 vacation homes, and over 1 million rooms.