Indian hospitality chain Oyo Hotels & Homes and its principal backer SoftBank Group have jointly acquired an 80 per cent stake in Japanese apartment rental operator MDI.
Nikkei Asian Review reported that the acquisition cost over US$100 million, citing a person familiar with the matter.
In the fiscal year ending in March, MDI posted revenue of 114 billion yen (US$1 billion), and 37,000 rooms operating under its management.
Following the acquisition, Oyo plans to list a portion of the 37,000 rooms operating under MDI management on its OyoLife room rental platform. This will supplement the firm’s existing inventory of about 2,000 rooms in Japan.
In an email correspondence, an Oyo spokesperson revealed to Nikkei Asian Review that the company aims to “leverage MDI’s strong network and business development capabilities in Japan’s real estate market”.
Earlier in February, Oyo forayed into Japan’s housing rental market through a joint venture with Yahoo Japan Corporation to form Oyo Technology & Hospitality Company. This resulted Oyo bringing its housing rental product, Oyo Living, from India to Japan.
In July, Oyo published a statement hailing itself the world’s third largest hotel chain by room count as of June 2019, where its portfolio comprises more than 23,000 hotels and 46,000 vacation homes.
In the same month, Oyo founder and CEO Ritesh Agarwal invested US$2 billion, through the entity RA Hospitality Holdings (Cayman), to increase his stake in the startup he founded.