- Oyo has acquired Paris-based Checkmyguest for Rs 230 crore ($27.4 million) in a deal involving both stock and cash.
- Oyo will gain Checkmyguest’s premium properties and brands like Studio Prestige and Helpmyguest.
- Oyo reports its first-ever profit of Rs 229 crores for FY24, marking a 215% increase in adjusted EBITDA from the previous year.
Indian hospitality giant Oyo has acquired Paris-based Checkmyguest in a deal valued at Rs 230 crore ($27.4 million), according to a report by The Arc. Checkmyguest was founded in 2016 by Julien Madar, Joffrey Ichbia, and Kevin Cohen. The company offers vacation rental properties, ranging from homestays to luxury apartments.
The deal involves both stock and cash, with Oyo set to issue 79.2 million shares. The cash portion of the transaction, however, has not been disclosed. Checkmyguest, which also runs a home renovation business, was previously valued at $110 million.
As per the same report, the estimated deal's value is based on Oyo’s latest private market share price of Rs 29.
Commenting on the event, an Oyo spokesperson further stated that Checkmyguest has a strong presence in Paris. Oyo will acquire a portfolio of premium homes mainly through a share swap over time. They further added that while the deal would involve some cash outlay, it would be quickly recovered as the business generates cash.
Moreover, as part of the deal, Oyo will also acquire more brands from Checkmyguest, including the apartment rental service Studio Prestige and the property design and renovation firm Helpmyguest.
In other news, OYO has recently announced its first-ever profit of Rs 229 crores for FY24, as revealed in its annual report. This comes after eight straight quarters of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company's adjusted EBITDA saw a 215% jump, reaching Rs 877 crores in FY24, up from Rs 277 crores in FY23.
Edited by Harshajit Sarmah
