OYO Snaps Up Paris-Based Checkmyguest For $27.4 Mn

Just a few days after raising INR 1,457 Cr (around $175 Mn) in a down round, hospitality major OYO has now reportedly acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal. 

Checkmyguest was earlier valued at $110 Mn, according to multiple reports. 

As per The Arc’s report, the size of the cash payout was not disclosed.

Also, the buyout included the housing renovation business HMG, formerly known as Helpmyguest and luxury rental apartment management company Studio Prestige, based on the report.

Inc42 has reached out to OYO for comments on the development. The story will be updated based on the response.

Earlier this week, Inc42 reported OYO’s annual earnings, in which it was revealed that the company, in line with its plans of global expansion, is looking to acquire Checkmyguest group via the issuance of 7.92 Cr Series G CCPS. 

Checkmyguest has a dense presence in Paris. OYO gets to acquire an inventory of premium homes primarily through a share swap over a period,” OYO spokesperson had said.

The spokesperson added that the deal would also involve “some cash outgo, which gets quickly offset since it’s a cash-generating business.”

Checkmyguest was established by Julien Madar, Joffrey Ichbia and Kevin Cohen in 2016 that offers vacation rental properties like homestays as well as luxury apartments.

Ichbia confirmed the deal with OYO through a social media post on LinkedIn.

“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.

Founded in 2012 by Ritesh Agarwal, OYO is a hospitality service company that aims to provide  easy-to-book and affordable accommodation to customers around the world. As per its recent earnings, OYO Hotel count grew to 18,103 at the end of FY24 from the 12,938 hotels it operated at the end of the fiscal year prior.

Earlier this month, OYO raised INR 1,457 Cr (around $175 Mn) in a down round led by Ritesh Agarwal floated Singapore-based entity Patient Capital, along with J&A Partners and ASK Financial Holdings, on Monday, dragging its valuation to $2.37 Bn.

Meanwhile, the travel tech major also claimed to have posted its maiden profitable fiscal for the financial year 2023-24 (FY24) on the back of an increased demand and improved market sentiment. 

According to the company’s annual report, the company’s profit after tax (PAT) for the fiscal stood at INR 229.57 Cr against the INR 1,286.51 Cr loss it made in the prior fiscal.

However, its revenue from contracts with customers (revenue from operations) declined a marginal 1.3% to INR 5,388.78 Cr from the INR 5,463.94 Cr it made in FY23, hurt by new additions to its inventory of hotels during the fiscal. 

Updated at 12:50 PM