The acquisition will boost OYO’s portfolio by 350 exclusive rooms across locations where Novascotia has its footprints.
Hospitality firm OYO on Monday said it has acquired Chennai-based service apartment company Novascotia Boutique Homes. The acquisition will add to the company’s existing portfolio and strengthen its operational expertise especially for corporate customers.
The company did not disclose the size of the deal.
“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 over 230 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,” said Ritesh Agarwal, founder and CEO, OYO.
“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.
The acquisition will boost OYO’s portfolio by 350 exclusive rooms across locations where Novascotia has its footprints, further strengthening OYO’s position as the full stack hospitality tech company in India.
Novascotia provides executive furnished accommodation to corporates for their personnel stay in locations such as Chennai, Coimbatore, Hyderabad, Kochi and Trivandrum and OYO plans to expand these offerings to 12 cities by the end of 2018.
Currently 95 per cent of OYO’s business is being driven by exclusive full inventory partnerships. The company has developed capabilities to add up to 10,000 rooms per month and targets to end the year with 180,000 rooms.
The development comes even as OYO is fighting a legal battle with one time competitor Zo Rooms following a failed merger talk.
The talks fell flat after two years of discussion. Oyo has filed a criminal complaint against Zostel, the holding company of erstwhile hotel aggregation brand Zo Rooms, allegedly for intimidating and pressurising the former into “submitting to their unreasonable demands”.
