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OYO’s $525 Million Gamble 😮

Published on Wed, Sep 25th 2024 People & Blogs Rectangular HD

OYO just spent 525 Million dollars to buy an American hotel brand, in an all-cash deal.

But the question is, why spend so much money, at a time when your valuation is down 75% and you are planning to go public?

Well, OYO thinks this acquisition will boost the confidence among its investors and help the company increase its valuation.

The company, G6 Hospitality, that OYO is acquiring has a network of 1500 hotels in the US and Canada, and it generates an annual gross revenue of $1.7 Billion dollars. So OYO is literally acquiring a money-making machine.

And while this is one side, another reality is that OYO’s past experience of expanding into the US wasn’t great.


In 2019, OYO spent hundreds of millions of dollars, to acquire and renovate over 300 hotels in the US, but most of this money had gone to waste, as company faced various operational issues and ultimately scaled back most of its operations.