Oyo has been wandering around the world after conquering the Indian market and the surrounding countries as well. It invades the country and blitzkrieg’s the hoteling industry while people wonder what just hit them. It has always been an all-out attack on the foreign countries as the company did not spare even China. It is conquering at a rate which is hard to comprehend for other companies in the same business.
That being said, Oyo recently decided to enter the student housing market in India as well. A survey carried out by the company gave rise to a huge market that is two times bigger than the west. Talking about the west, Oyo has entered the Middle East, conquered South East Asia along with China and now is looking to win over the west. The west is heavily guarded by Airbnb and it will be hard to enter the market with such a huge presence from one of the biggest hospitality company in the world.
Point being, Oyo needs a special skill set to enter the European and American market. The United State looks a distant dream for Oyo but Europe seems a plausible bet. To acquire that special skill set, instead of investing in talent abroad, it has decided to go with the acquisition method this time on. Oyo acquired a vacation rental company @Leisure Group.
@Leisure Group is just like Oyo with its full-stack approach. The company has around 300,000 rooms across 300 cities in Europe. This is massive for a company that is not so old. The rooms range from Kokelv in Norway to Zahara de los Atunes in Spain. More than 2.8 million people look for holiday homes, holiday parks and cottages with the @Leisure Group.
This is a special skill set which Oyo requires to engage in Europe. And that is the reason why the company is acquired by Oyo for around $415 million. The 51% stake was bought from Axel Springer. Also, Tobias Wann will join Oyo’s leadership as CEO of Vacation Homes. He will work with the global chief strategy officer of Oyo Maninder Gulati.
Ritesh Agarwal was more than happy with this acquisition. He said, “@Leisure Group has proven capabilities in helping develop Europe into a vacation rentals hotspot and we are keen to leverage their competencies towards ensuring beautiful vacation rental and urban homes experience for millions of tourists from every part of the world. It is a business decision closely aligned with our overall mission.”
This might launch Oyo in Europe which will be a huge victory for the company. This is also a great step towards the company’s dream of becoming the biggest hospitality company in the world by 2023. It will be interesting to see how it fares from there on and when will it fulfill the American dream.