Indian hospitality company Oyo Hotels and Homes (OYO) on Wednesday said it will invest €300 million (about $334 million) to strengthen its vacation rental business in Europe, given the increasing preference for vacation homes by customers around the world.
The decision follows the rapid growth of the recently acquired brands Belvilla, DanCenter, Danland and Traum-Ferienwohnungen, combined with the many opportunities still to be capitalised within the vacation rental industry, OYO said in a statement.
“The company has committed to invest €300 million in the business, with a special focus on strengthening the relationship with homeowners and enabling them with the resources required to deliver chic hospitality experiences,” it added.
Identifying vacation rentals service business as a multi-billion Euro opportunity, OYO will aim to expand the presence of OYO Home, Belvilla and Dancenter brands across Europe. The company aims to become the No. 1 vacation rental brand globally.
Since the acquisition of Amsterdam-based holiday rental company Leisure in May, close to 2.8 million holidaymakers from over 118 countries have used Oyo Vacation Homes, the company claimed.
“Globally, vacation rentals represent a massive multi-billion euro opportunity, the largest of which is in Europe,” Global Head Oyo Vacation and Urban Homes, and Chief Strategy Officer Oyo Hotels & Homes Maninder Gulati said.
With offices in Switzerland, Spain, Italy, Netherlands, France, and cities across Europe, the teams will be supporting the growth of the vacations business across identified regions, the company said.
Tobias Wann, CEO, OYO Vacation Homes, said, “We are focusing on enhancing our customer proposition to not just families but new age millennials and young executives, traveling for business or leisure, including consumers from newer geographies who travel to Europe from across the world including US, Asia, China and the Middle East. With a goal of becoming the largest vacation rentals business in Europe, OYO Vacation Homes will continue to make significant investments in resourcing and manpower towards growing its existing footprint in the market.”
OYO’s portfolio currently comprises more than 23,000 hotels and 1,25,000 vacation homes, with over one million rooms. The company also recently announced an investment of $300 million to expand its footprint in the U.S.