OYO's big move: Not only hotel room but from now...what's the plan!

New Delhi (The Uttam Hindu): Strengthening its foothold in the world of hospitality, Indian company OYO has taken another big step towards international expansion. OYO's European vacation home management unit, Belvilla by OYO, has acquired Australia's leading short-term rental management company MadeComfy. The deal was done with a mix of cash and stock and has been approved at the extraordinary general meeting (EGM) of OYO's parent company Oravel Stays.

What is the price of the deal?

According to the Economic Times report, under this acquisition, Oyo will initially issue shares worth about $ 1.9 million (about Rs 16 crore). The value of these shares has been kept at around $ 0.67 (about Rs 57) per share. On this basis, the total valuation of Oyo is estimated to be around $ 5 billion (about Rs 42,500 crore). According to the terms of the deal, Oyo will issue additional shares worth $ 9.6 million (about Rs 81 crore) after two years. Apart from this, the deal also includes some cash payment, although its exact amount has not been disclosed.

About Made Comfy

MadeComfy was started in 2015 by Sabrina Bethunin and Quirin Schweighofer. The company specializes in managing short-term rental properties in Australia and helps property investors get better returns. Currently, MadeComfy manages over 1,200 properties in Australia and has offices located in major cities like Sydney, Melbourne, Brisbane, Perth and Adelaide. The company also offers its services in cities like Auckland, Wellington and Hamilton in New Zealand. The company's revenue in FY24 was approximately $9.6 million.

Why is this important for OYO?

This acquisition is strategically very important for OYO. Through this, OYO has got direct access to developed and attractive hospitality markets like Australia and New Zealand. This will further strengthen OYO's vacation home segment, Belvilla by OYO.

OYO's global expansion continues

It is worth noting that OYO is constantly expanding its business globally. In 2019, OYO acquired the European Leisure Group, which also included the Bellvilla brand. Since then, it is being run under the name "Bellvilla by OYO", under which there are more than 50,000 holiday homes in 20 European countries.

In addition, in December 2024, Oyo acquired G6 Hospitality for $525 million, giving it a network of over 1,500 franchised hotels in the US and Canada. The acquisition of MedComfy is an important part of Oyo's global expansion strategy, which will help the company establish itself as a major player in the hospitality sector worldwide.