OYO’s Latest Acquisition: Checkmyguest
OYO, a significant player in the hospitality industry, has reportedly bought Checkmyguest, a luxury rental property firm based in Paris, for INR 230 Cr ($27.4 Mn) in cash and stock, just days after raising INR 1,457 Cr (about $175 Mn) in a down round. Checkmyguest was formerly estimated to be worth $110 million, per several estimates.
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The Arc report states that OYO will issue 72.9 million shares during the takeover. However, the amount of the monetary settlement was not made public. Included in the takeover were the luxury rental apartment management company Studio Prestige and the home refurbishment company HMG, previously Helpmyguest. In Paris, Checkmyguest is widely available. An OYO representative quoted the report as saying that OYO primarily obtains inventory of premium residences through a share swap over time.
The spokesperson also said the deal would involve “some cash outgo, which gets quickly offset since it’s a cash-generating business.”
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In 2016, Joffrey Ichbia, Kevin Cohen, and Julien Madar founded Checkmyguest. The company provides vacation rental residences, including opulent apartments and homestays. Ichbia confirmed the agreement with OYO through a LinkedIn social media post.
“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,” he said.
OYO is a hospitality services startup founded in 2012 by Ritesh Agarwal to offer clients worldwide simple, inexpensive lodging options. According to its most recent earnings, the number of OYO hotels increased from 12,938 at the end of the previous fiscal year to 18,103 at the end of FY24.
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In a down round headed by Ritesh Agarwal earlier this month, OYO raised INR 1,457 Cr (about $175 Mn). On Monday, it floated Singapore-based Patient Capital along with J&A Partners and ASK Financial Holdings, raising its valuation to $2.37 Bn. The travel technology leader also announced its first-ever profitable fiscal year for 2023–2024 (FY24), pointing to rising demand and better market mood.
