Getty ImagesNEW DELHI: Oyo Hotels & Homes is in talks to acquire Qianyu, a midsize hotel brand in China, a deal that is likely to mark the SoftBankbacked company’s first acquisition in the country. Oyo has been aggressively ramping up its operations in the world’s second-largest economy, since entering the market in late 2017. Sources told ET that discussions are ongoing.
However, digital publication Entrackr reported that the deal had closed last week. When contacted by ET, an Oyo spokesperson said the company had nothing further to share at this point.
The developments come at a time when Oyo has referred to China as its second home market and has said that its Chinese subsidiary, Oyo Jiudian, was present in 280 cities across China, operating more than 5,000 hotels and 2,60,000 rooms, as of January this year. It runs a mix of franchised and leased properties in the country. The acquisition, if complete, will be its first in China, but the second buyout by the Gurgaon-based Oyo in the past three months. The Ritesh Agarwal helmed company is also believed to have acquired co-working venture Innov8 in an all-cash deal estimated at about ?220 crore. Oyo is also yet to publicly confirm its acquisition of Innov8. The reports also come a little over a month after ET first reported in its February 14 edition that Chinese ride-hailing giant Didi Chuxing had invested $100 million in the hospitality chain, in the process, valuing it at about $5 billion.
That tranche was part of a larger $1 billion equity financing round, of which Oyo has earmarked $600 million towards its operations in China. Oyo operates six brands under its portfolio — Oyo Rooms, Townhouse, SilverKey, Capital O, Palette Resorts and Collection O.
However, digital publication Entrackr reported that the deal had closed last week. When contacted by ET, an Oyo spokesperson said the company had nothing further to share at this point.
The developments come at a time when Oyo has referred to China as its second home market and has said that its Chinese subsidiary, Oyo Jiudian, was present in 280 cities across China, operating more than 5,000 hotels and 2,60,000 rooms, as of January this year. It runs a mix of franchised and leased properties in the country. The acquisition, if complete, will be its first in China, but the second buyout by the Gurgaon-based Oyo in the past three months. The Ritesh Agarwal helmed company is also believed to have acquired co-working venture Innov8 in an all-cash deal estimated at about ?220 crore. Oyo is also yet to publicly confirm its acquisition of Innov8. The reports also come a little over a month after ET first reported in its February 14 edition that Chinese ride-hailing giant Didi Chuxing had invested $100 million in the hospitality chain, in the process, valuing it at about $5 billion.
That tranche was part of a larger $1 billion equity financing round, of which Oyo has earmarked $600 million towards its operations in China. Oyo operates six brands under its portfolio — Oyo Rooms, Townhouse, SilverKey, Capital O, Palette Resorts and Collection O.
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