India's OYO Eyeing Major US Expansion With Las Vegas Hotel Acquisition
OYO, India's largest hotel chain operator, is now eyeing the city of Las Vegas as one of the first destinations for its global expansion. The company announced this week that it has already signed a deal to purchase the Hooters Casino and Hotel in Nevada.
The Indian firm revealed that it has agreed to acquire the gambling and entertainment establishment as part of a $135 million deal. The hotel sports 657 rooms and a plethora of entertainment facilities.
OYO plans to rebrand the hotel into the OYO Hotel and Casino Las Vegas after it is done with renovations. The rebranding and makeover over the facility are expected to be completed by the end of the year. The new acquisition will be OYO's first-ever property in the city.
The Indian company had partnered with Highgate, a US hospitality and investment firm, on the substantial acquisition. Highgate will reportedly be taking over the overall management of the hotel.
Meanwhile, OYO had signed a deal with Nevada-based firm Paragon Gaming for it to take over operations of the establishment's 35,000 square foot casino.
OYO's founder and CEO Ritesh Agarwal mentioned in a prepared statement that the company was very excited to enter a completely different segment.
OYO is apparently prepared to take on the challenge of serving a different audience from what it has been accustomed to. The acquisition is seen by the company as its first step into entering the highly lucrative Las Vegas hospitality market.
The only six-year-old startup company has set its sights relatively high, with aspirations to become the world's largest hotel chain by 2023. The company, which is based on the technology center of Gurgaon near New Delhi, is planning to further expand its business globally.
The company has since expanded its business to international destinations such as Japan, Europe, and the United States. OYO recently partnered with tech giant SoftBank to acquire the Amsterdam-based vacation rental firm @Leisure.
In April, OYO had received a substantial $200 million investment from Airbnb. OYO announced back in June that it is planning to invest more than $300 million in its United States expansion. The company currently operates more than 112 hotels in over 60 cities across the United States.
According to the company, it has now grown to become the third-largest hotel chain in the world in terms of total room numbers. The company is currently behind Marriot, with 850,000 rooms around the world. OYO is currently valued at around $300 million.