OYO has been playing aggressively in global markets, particularly in China. The SoftBank-backed company claims the largest inventory of 3,60,000 rooms across China. To ramp up its operations in the country where many stalwarts including Amazon and Uber had to retreat, OYO has acquired a smaller rival Qianyu.
“The transaction had completed last week and it would mark the first acquisition of the company in the country,” said two sources aware of the matter. Sources point out that the acquisition would help OYO to accelerate its expansion and gain local talents and expertise.
Qiayu claims to be a midscale hotel brand that follows the franchise model to bring hoteliers under the brand. Just like OYO does in India, the Chinese firm renovates existing properties, give its brand and pool in bookings for them through OTAs.