OYO in talks to buy Keys Hotels from USbased private equity firm

first_img Hotel Collapse In Peru Kills At Least 15 During Wedding OYO Rooms founder Ritesh AgarwalOYO Hotels and Homes is in talks with US-based Berggruen Holdings, to acquire their company Keys Hotels in India. Berggruen Holdings, a $2 billion private equity and venture capital firm, is the owner of Berggruen Hotels in India, which operates business hotels under the Keys brand. The Keys Hotels brand, established in 2006, currently has a portfolio of about 20 owned, managed and franchised hotels across the country in cities such as Mumbai, Chennai and Mahabaleshwar. Out of its entire portfolio of hotels, Keys Hotels owns seven hotels totalling 1,000 rooms while another 13 are managed and franchised.OYO has approached Berggruen Holdings and due diligence has been carried out. A lot of investment has gone in Keys, but the business has been languishing. The valuations have to make sense. Keys was looking at a valuation of about $ 125 millionKeys Hotels, which has a debt of around 1.6 billion rupees, had been seeking buyers for the past few years. “OYO has approached Berggruen Holdings and due diligence has been carried out. A lot of investment has gone in Keys, but the business has been languishing. The valuations have to make sense. Keys was looking at a valuation of about $ 125 million,” an unnamed source told The Economic Times. Planning to rent an OYO room? Well, you may be on the radar of the government/agenciesKVN Rohit/IBTimes IndiaErnst & Young is the intermediary transaction advisor for the deal, media reports said. If the deal materialises, it would be the fourth acquisition in a year for Softbank-backed OYO. The hospitality major had acquired Chennai-based serviced apartment company Novascotia Boutique Homes in March last year, following it up with the buyouts of internet-of-things technology venture AblePlus and online marketplace for wedding venues and vendors, Weddingz.Building capabilities”Our acquisition strategy is targeted towards acquiring entities that assist us in building capabilities, we do not have any further announcement to make at the moment” an OYO spokesperson told the financial newspaper. However, Anshu Sarin, chief executive officer of Berggruen Hotels, denied being aware of any discussions with OYO. IBTimes VideoRelated VideosMore videos Play VideoPauseMute0:00/0:20Loaded: 0%0:01Progress: 0%Stream TypeLIVE-0:20?Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedSubtitlessubtitles settings, opens subtitles settings dialogsubtitles off, selectedAudio Trackdefault, selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window. COPY LINKAD Loading … Lately, Ritesh Agarwal-led OYO has been focusing on expanding its international presence, with a special focus on China. Globally, OYO is present in over 500 cities across eight countries – India, China, Malaysia, Nepal, UK, UAE, Indonesia, and the Philippines. As of December 2018, the company had 458,000 rooms across the world. Closelast_img

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