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Skift Take
As Oyo keeps pushing forward in Europe, snapping up Checkmyguest and its affiliates drives home the company’s determination to carve out a spot in the global vacation rental market.
Looking to bolster its presence in the European short-term rental market, India-based hospitality company Oyo has acquired Paris-based rental management company Checkmyguest. The acquisition is valued at INR 2.3 billion ($27.4 million), according to reports.
This acquisition also includes two affiliated companies, Studio Prestige, a luxury apartment rental service, and Helpmyguest, a property design and renovation firm.
The acquisition comes on the heels of Oyo’s recent capital raise of INR 14.5 billion ($175 million), albeit at a reduced valuation of $2.4 billion, a significant drop from its $10 billion peak in 2019.
Oyo’s First-Ever Profit
Despite the financial hit, Oyo’s expansion efforts continue unabated, with the company on Wednesday reporting its first-ever profit after tax of INR 2.29 billion ($27.2 million) for fiscal 2024.
Fiscal 2024 also saw Oyo’s inventory grow from 12,938 properties in fiscal 2023 to 18,103.
A spokesperson for Oyo highlighted the strategic advantages of the acquisition, particularly Checkmyguest’s strong presence in Paris, one of the world’s most visited cities. “Oyo gets to acquire premium homes inventory primarily through a share swap over a period of time, in addition to some cash outgo for the acquisition, which gets quickly offset since it’s a cash-generating business,” the spokesperson noted.
In May this year, Oyo withdrew its application for an IPO, which it had filed in March 2023. This is the second time Oyo has withdrawn its draft IPO papers. The company initially filed for an IPO in 2021, aiming to raise approximately $1.16 billion with a valuation of around $12 billion.
The acquisition marks Oyo’s third major purchase in the European short-term rental market since the launch of Oyo Vacation Homes. Previously, the company acquired Croatian vacation rental agency Direct Booker for $5.5 million and Nordic-based holiday home operator Bornholmske Feriehuse in 2022. In 2019, Oyo also bought Amsterdam-based vacation rental company @Leisure Group for $415 million.
Europe, a key market for Oyo’s growth strategy, offers significant opportunities, particularly in the vacation rental sector. The company’s recent annual report emphasized global expansion, with a particular focus on Europe, the U.S., Southeast Asia, and the Middle East.
Oyo Vacation Homes, the company’s European division, has been at the forefront of this growth.
In addition to its European acquisitions, Oyo has been expanding its premium vacation home rental brand, Belvilla by Oyo, with a recent launch in the UK.
Oyo expects the acquisition of Checkmyguest and its affiliated companies to further strengthen its position in the competitive European market.
The Paris-based Checkmyguest, known for its management of short and medium-term rental properties, recently secured funding through a special purpose vehicle backed by Swiss Life Banque Privée. Through this funding the company aimed to convert vacant offices in Paris into rental properties.
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