Big news in the vacation rental sector with OYO Rooms flexing its acquisition muscles and buying Leisure Group in a €360 million deal.
The acquisition marks the first big international investment by India-based OYO and puts it feet first in the Europe marketplace for private accommodation.
Leisure Group has more than 30,000 fully managed rental properties across Europe, operating nine brands including Belvilla, DanCenter and Danland.
A subscription-based home management service under the Traum-Ferienwohnungen brand has 85,000 homes in 50 countries and is also part of the deal.
The deal is in two parts, with German media and internet giant Axel Springer selling its 51% stake in the business for €180 million and the rest going to other shareholders. Axel Springer invested in Leisure five years ago.
OYO says the deal marks a "massive opportunity" for it to capitalize on a $2 trillion market in private accommodation, with Europe accounting for somewhere in the region of 30% to 40% of it.
OYO took a $1 billion investment in September last year - a deal that it later emerged included participation from Airbnb.
Global chief strategy officer at OYO Maninder Gulati says: “With Europe spearheading the vacation and urban home rental trend globally, Leisure Group is uniquely positioned to capitalize on its experience and insights aided with OYO’s full-stack approach towards building the world’s largest global vacation rentals business.
Leisure's existing CEO, Tobias Wann, will become CEO for vacation homes at OYO Global.
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