India-based hotel and booking site OYO – which is the fastest-growing hotel chain in the world, according to the company – said it will invest $335 million into its European vacation rental venture, with the goal of expanding further and potentially competing with Airbnb, according to a report.
In May, OYO acquired Leisure, a rental company based in Amsterdam, and rebranded it as OYO Vacation Homes. OYO said it wants to turn the venture into a “top-notch” vacation experience and to become the homeowners’ “partner of choice.”
OYO plans to use the money in “strengthening the relationship with homeowners and enabling them with the resources required to deliver chic hospitality experiences.” The venture, which OYO said will be the biggest vacation rental service in Europe, will be managed under the OYO Home, Danland, Dancenter and Belvilla brands.
“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 U.S., Asia, China and the Middle East,” said Tobias Wann, CEO of OYO Vacation Homes.
OYO has around 23,000 hotels, around 125,000 vacation homes and more than one million rooms in 80 countries. The company said it has “doubled its growth” since it acquired Leisure.
There are 2.8 million people using the Leisure service throughout 118 countries every year. It has 115,000 homes throughout Europe and 300,000 around the world. The European vacation market is expected to be worth around $18.6 billion this year, with growth estimates of 4 to 8 percent per year.
OYO has also recently expanded into the co-working business, aiming to invest $300 million into U.S. expansion.