SUMMARY
- OYO has recently acquired Checkmyguest, a Paris-based premium rental homes company for Rs 230 crore in a cash and stock deal.
- The acquisition also included Checkmyguest’s housing renovation business, HMG, which was formerly known as Helpmyguest and managed luxury rental apartments under the name Studio Prestige, as reported.
- Earlier this week, it was announced that OYO was in talks to purchase Checkmyguest through a 7.92 crore Series G CCPS issuance.
Hospitality giant OYO has recently acquired Checkmyguest, a Paris-based premium rental homes company for Rs 230 crore ($27.4 million) in a cash and stock deal.
According to various sources, Checkmyguest was previously valued at $110 million. The exact amount of the cash payout was not disclosed as also stated in The Arc’s report.
The acquisition also included Checkmyguest’s housing renovation business, HMG, which was formerly known as Helpmyguest and managed luxury rental apartments under the name Studio Prestige, as reported.
Earlier this week, it was announced that OYO was in talks to purchase Checkmyguest through a 7.92 crore Series G CCPS issuance.
An OYO spokesperson mentioned that Checkmyguest’s strong presence in Paris is a key factor in the acquisition, with OYO intending to expand its portfolio of premium homes through a share swap.
The spokesperson also noted that the acquisition would involve some cash outgo, which is expected to be offset shortly as it is a cash-generating business.
Checkmyguest, founded in 2016 by Julien Madar, Joffrey Ichbia, and Kevin Cohen, offers vacation rental properties, including homestays and luxury apartments.
Ichbia confirmed the deal with OYO via LinkedIn, stating, “We are delighted to announce that Checkmyguest is now part of OYO, one of the largest hotel groups worldwide. This merger is a major milestone for us and opens up incredible opportunities in terms of development, new markets, and careers.”
OYO, established in 2012 by Ritesh Agarwal, is a hospitality service company dedicated to providing easy-to-book and affordable accommodation worldwide. As of the end of the fiscal year 2024, OYO’s hotel count had increased to 18,103 from 12,938 in the previous fiscal year.
In a recent development, OYO raised Rs 1,457 crore (approximately $175 million) in a down round, led by Ritesh Agarwal’s Singapore-based entity Patient Capital, with participation from J&A Partners and ASK Financial Holdings, on Monday, reducing its valuation to $2.37 billion.
OYO announced its first profitable fiscal year for FY24, attributed to a rise in demand and a more positive market outlook. According to the company’s annual report, its profit after tax (PAT) for the fiscal year stood at Rs 229.57 crore, a significant improvement from the previous fiscal year’s loss of Rs 1,286.51 crore.
The company’s revenue from customer contracts (revenue from operations) saw a slight decline of 1.3% to Rs 5,388.78 crore from the previous fiscal year’s figure of Rs 5,463.94 crore, affected by the addition of new hotels to its inventory.
