OYO has acquired the Paris-based premium rental homes company Checkmyguest for $27.4 million in a cash and stock deal.
As per a report by The Arc, OYO will issue 72.9 Million shares for the buyout.
The buyout will comprise of housing renovation business HMG, previously known as Helpmyguest and the luxury rental apartment management company Studio Prestige.
The size of cash payout, however was not disclosed.
An OYO spokesperson stated that the company would acquire an inventory of premium homes primarily through a share swap over a period as per the report. The deal would also involve cash outgoes which the company will quickly offset since it's a cash-generating business.
Advertisement
The development comes after OYO raised $175 Million in a funding round led by Patient Capital, along with J&A Partners and ASK Financial Holdings. It dragged the company’s valuation to $2.37 billion.
Checkmyguest, which was earlier valued at $110 Million, has a dense presence in Paris. It was launched in 2016 by Julien Madar, Joffrey Ichbia and Kevin Cohen to offer rental properties like homestays as well as luxury apartments.
OYO was founded in 2012 by Ritesh Agarwal to offer easy-to-book and affordable accommodation to customers across the world. OYO Hotel count grew to 18,103 at the end of FY24 from the 12,938 hotels it operated at the end of FY23 as per the company’s recent earnings
Advertisement
Its fiscal stood profitable for the financial year 2023-24 (FY24) on the back of increased demand and improved market sentiment.
The company’s profit after tax (PAT) for the fiscal stood at Rs 229.57 crore. The company had a loss of Rs 1,286.51 crore in the previous fiscal year.
