The acquisition will boost OYO’s portfolio by 350 rooms across locations where Novascotia has its footprints
This is OYO’s first business acquisition since its launch in 2013.
With this acquisition, OYO will bring its distribution, operational, transformational and technological capabilities on board.
The acquisition will boost OYO’s portfolio by 350 rooms across locations where Novascotia has its footprints.
Commenting on the development, Ritesh Agarwal, Founder & CEO of OYO, said: “Though in the niche segment of boutique homes, Novascotia brings with it the expertise in catering to the corporate travel segment, an area we have seen great potential and established ourselves as the market leader with varied offerings across 230-plus cities including all major corporate hubs.”
“The acquisition forms an integral part of our inorganic growth plan, in line with our ambition to create beautiful and quality living spaces and adding value to every form of real estate. OYO is poised to deliver 180,000 keys by the end of 2018 and with Novascotia’s Strength, we will be adding service apartments to our existing portfolio – which includes budget rooms, OYO Townhouse, OYO Home, enabling us to offer a wide range of choices to our customers,” he added.
With 100% of its demand coming from corporates and a healthy EBITDA of 14%, Novascotia has built a strong portfolio for itself while providing executive furnished accommodation to corporates for their personnel stay in locations, including Chennai, Coimbatore, Hyderabad, Kochi and Trivandrum and OYO plans to expand these offerings to 12 cities by the end of 2018. These serviced apartments are located in the heart of business hubs equipped with spacious rooms, upscale interiors, meals, gym and dining area to cater all the requirements of business travellers.
G. Madhu Manohar and Girja Madhu, Co-founders, Novascotia, said, “Novascotia is a brand built over years with a lot of commitment and hard work. With OYO, we saw similar passion towards solving a problem and we are thrilled to become a part of the entity which is driven by perseverance and innovation. We are convinced that OYO with its wide experience in the hospitality business and hunger for delivering quality customer experience has every potential to take the Novascotia brand promise of ‘home away from home; forward. We are delighted with the support and professionalism received from OYO, its teams and our advisers at ANOVA Corporate Services for taking this to closure. We are excited to be onboard.”
OYO has operations in more than 230 cities across India, Malaysia and Nepal. With over 70,000 rooms in its network, OYO works in close proximity with its hotel partners while exercising full control over the hotels for ensuring a quality experience for travellers. Its network includes major metros, regional business hubs, top leisure destinations as well as pilgrimage towns.
OYO is backed by leading investors, including the SoftBank Group, Greenoak Capital, Sequoia India, Lightspeed India, Hero Enterprise and China Lodging Group.