Oyo Hotels and Homes is holding discussions with financial institutions to raise USD 200 million in loans to acquire premium hotels in the US, Livemint reported citing two people in the know.
“Oyo is going to create a separate entity in the US to help it acquire and run four and five star hotel assets in America. It is in talks with several financial institutions to raise debt to fund these transactions," The budget hotel chain is foraying into the luxury segment in India. Recently, Oyo has purchased a 64-suite building in Ahmedabad in partnership with Gurugram-based Mountania Developers.
In August, Oyo bought Hooters Casino Hotel in Las Vegas. “We are excited with our rapid growth and early success in the US, our newest home market, where our partnership with Highgate to open the doors to our first flagship hotel in Las Vegas, Oyo Hotels and Casino, has been a key milestone. We have already hit the 100 hotels mark in a short span. We continue to explore ways to create value for our asset owners, while enabling all our guests to experience #LivingTheGoodLife at an Oyo near them,” an Oyo spokesperson said.
In May, Oyo struck a deal to buy Amsterdam-based @Leisure Group from Axel Springer. @Leisure is a vacation rental company based in Europe.
Oyo has raised in the neighbourhood of USD 1.7 billion in funding at a valuation of USD 5 billion.
“They have raised a couple of property funds where SoftBank has put in money as well to buy hospitality and other assets here in India and other countries.The idea is that they are going to be tenants of these properties, so they want to create real estate investment trust (REIT)-like returns via ownership," the source told Livemint.