Fast-growing Indian hotels group Oyo will splash out €300 million to upgrade holiday homes across Europe, including with pools and saunas, to attract millennials and overseas travellers as it invests heavily in response to rising demand.
Under the broad-based spending plans, OYO Vacation Homes will finance property improvements such as air conditioning, a swimming pool or sauna, expand cleaning and door-key management services, upgrade its booking technology and open more offices.
The investment comes just three months after Oyo Group acquired the @LeisureGroup in a €369.5 million deal and shortly afterwards re-branded the previously German-owned company to Oyo Vacation Homes. Since then, the business, with more than 2.8 million customers a year, has doubled its growth rate and expects to accelerate even faster over the coming year.
Overall, Oyo Vacation Homes, which includes full-service brands Belvilla, DanCenter and Danland with some 30,000 managed properties, Germany-based booking portal Traum-Ferienwohnungen, which offers more than 85,000 homes, and Oyo Home, aims to grow from number three to number one in the European vacation rental market.
The company aims to offer guests “a consistent top-notch holiday experience”, become the partner of choice for homeowners, and expand the OYO Home, Belvilla and DanCenter brands across Europe.
CEO Tobias Wann explained: “To support our vision towards becoming the largest full-service vacation rental business, we will make significant investments to expand our footprint in the market. 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.
“Consistently offering chic-looking, well-managed and organized holiday homes to our guests as well as opening doors to more vacation rentals will help unlock our next growth phase. With a goal of becoming the largest vacation rentals business, OYO Vacation Homes will continue to make significant investments in resourcing and manpower towards growing its existing footprint in the market,” he underlined.
Maninder Gulati, the OYO group’s chief strategy officer and head of OYO Vacation and Urban Homes, commented: “Globally, vacation rentals represent a massive multi-trillion opportunity, the largest of which is in Europe. With Europe spearheading the vacation and urban home rental trend globally, OYO Vacations Homes is uniquely positioned to capitalize on its experience and insights aided with OYO’s proven approach towards building the world’s largest global vacation rentals business.”