OYO Hotels acquires @Leisure for US$413m

With the acquisition of @Leisure Group, an Amsterdam-based vacation rental company, OYO Hotels & Homes is looking to expand in Europe

May 2, 2019

The @Leisure Group offers more than 30,000 fully-managed holiday homes, cottages and holiday parks in over 300 cities across 13 countries in Europe

There are over 100 million homes covering vacation rentals and urban homes offering a big opportunity to be part of a more than US$2 trillion market

Branded hotels in India had crossed 65.7 occupancy rate in 2017 for the first time, as per ‘Hotels in India Trends & Opportunities’ note by consultant HVS

India’s travel and tourism industry saw revenue of US$91.3 billion in 2017, to double over the next decade. Foreign spending made up US$26 billion

OYO Hotels & Homes, India’s leading hospitality platform, has acquired Amsterdam-based vacation rental company, @Leisure Group, for about US$413 million, as per an official announcement and media reports on May 2. Oyo bought @Leisure from Axel Springer, a German media and technology company. With this acquisition, Oyo said that it had become a “world-leading holiday homes manager”. With @Leisure, Oyo now hopes to expand into Europe. The @Leisure Group, through brands such as Belvilla, DanCenter, and Danland, offers more than 30,000 fully-managed holiday homes, cottages and holiday parks in over 300 cities across 13 countries in Europe, stretching from Kokelv in Norway to Zahar De Los Atunes in Spain.

@Leisure’s other brand, Traum-Ferienwohnungen, an online platform, offers subscription-based home management service with more than 85,000 homes across 50 countries, Oyo added. The agreement will add @Leisure’s around 115,000 home units to Oyo’s portfolio. Oyo said that there were over 100 million homes covering vacation rentals and urban homes that offered a massive opportunity to be part of this more than US$2 trillion market. Out of this, Europe is the largest market with 30-40 per cent of vacation rentals and urban homes. OYO Home, launched in 2017, has more than 45,000 properties globally. Indian hospitality space is seeing a rapid expansion to cater to demand from domestic and foreign travellers.

The activity has encouraged deals in the space with Hotel Leela Venture selling a chunk of its hospitality business for nearly US$580 million to a real estate fund led by Brookfield Asset Management in March 2019. India’s travel and tourism industry reported revenue of US$91.3 billion in 2017, which is projected to double over the next decade. Foreign spending alone made up US$26 billion. France’s AccorHotels is also looking to add 20 new properties across India in the next three to five years. Branded hotels in India had crossed 65.7 occupancy rate in 2017 for the first time, as per ‘Hotels in India Trends & Opportunities’ report by global hospitality consulting firm HVS. Average room rates are also rising in India in 2019.