Oyo, an India-based hospitality company, recently acquired Paris-based rental management company Checkmyguest in a deal valued at INR 2.3 billion ($27.4 million). This acquisition also includes two affiliated companies, Studio Prestige and Helpmyguest. Despite a recent drop in valuation, Oyo reported its first-ever profit after tax for fiscal 2024, signaling its commitment to expansion. The company’s inventory has also grown significantly, from 12,938 properties in fiscal 2023 to 18,103 in fiscal 2024. The strategic advantages of the acquisition were highlighted, particularly Checkmyguest’s strong presence in Paris.
This acquisition marks Oyo’s third major purchase in the European short-term rental market, following previous acquisitions of Direct Booker and Bornholmske Feriehuse. Europe is a key market for Oyo’s growth strategy, with significant opportunities in the vacation rental sector. The company’s recent annual report emphasized global expansion, with a focus on Europe, the U.S., Southeast Asia, and the Middle East. Oyo Vacation Homes, the company’s European division, has been driving this growth. In addition to its acquisitions, Oyo has been expanding its premium vacation home rental brand, Belvilla by Oyo, with a recent launch in the UK.
The Checkmyguest acquisition allows Oyo to acquire premium homes inventory in Paris and strengthen its position in the competitive European market. With its recent success and focus on global expansion, Oyo’s determination to carve out a spot in the global vacation rental market is evident. The company’s growth in Europe, particularly through strategic acquisitions, demonstrates its commitment to becoming a major player in the short-term rental industry. Oyo’s previous acquisitions in Europe, coupled with the recent profitability and inventory growth, position the company for continued success in the region.
In light of the acquisition, Oyo’s decision to withdraw its IPO application earlier this year is noteworthy. The company had initially filed for an IPO in 2021, planning to raise approximately $1.16 billion with a valuation of $12 billion. Despite withdrawing its IPO application twice now, Oyo’s focus on acquisitions and global expansion signals a shift in priorities. By investing in the European market through acquisitions like Checkmyguest, Oyo is solidifying its presence in key cities and regions, such as Paris. This strategic move aligns with the company’s long-term vision for growth and market dominance.
The acquisition of Checkmyguest and its affiliated companies further underscores Oyo’s commitment to expanding its presence in Europe. By targeting key markets such as Paris and leveraging the strengths of acquired companies, Oyo is positioning itself as a formidable player in the vacation rental industry. With a focus on growth in Europe and other strategic regions, Oyo is actively pursuing opportunities to drive expansion and increase its market share. The company’s ability to adapt to changing market conditions, coupled with its recent profitability, sets a strong foundation for future success in the global vacation rental market.
Overall, Oyo’s acquisition of Checkmyguest and its affiliates represents a significant milestone in the company’s growth journey. By solidifying its position in Europe and expanding its premium vacation home rental brand, Oyo is poised for continued success in the global vacation rental market. Despite challenges such as the drop in valuation and the withdrawal of its IPO application, Oyo’s focus on strategic acquisitions and global expansion positions it as a key player in the industry. With a track record of growth and profitability, Oyo’s determination to carve out a spot in the competitive vacation rental market is evident through its recent acquisition and continued expansion efforts.
