In a move that underscores its ambitions in the European market, OYO, the Indian hospitality giant known for its aggressive global expansion, has acquired Checkmyguest, a Paris-based property management company specializing in high-end short- and mid-term rentals. Valued at $27.4 million, this acquisition is a tactical leap for OYO toward dominating the European vacation rental market. But what does this mean for the short-term rental industry, and how should professional property managers interpret this move? Let’s unpack it.

From Budget Hotels to Global Dominance: OYO’s Evolution

OYO’s journey from a budget hotel aggregator in India to a global hospitality leader has been quite a juggernaut. Founded in 2013 by Ritesh Agarwal, OYO initially focused on standardizing the fragmented and inconsistent budget accommodation market in India. Its success in offering reliable, affordable lodging quickly caught the attention of major investors, including Softbank, which fueled its rapid expansion into new markets across Asia, Europe, and North America.

By 2019, OYO had evolved from a budget hotel chain into a diversified hospitality group, encompassing budget and mid-market hotels, vacation homes, and short-term rentals. Despite facing challenges, including a recent down round in fundraising that saw its valuation adjusted to $2.37 billion, OYO reported its first profitable financial year in 2023-24, driven by increased demand and improved market conditions.

Building a European Powerhouse: OYO’s Acquisition Trail

OYO’s global expansion strategy, particularly in Europe, has been marked by a series of strategic acquisitions and partnerships. The company’s 2019 acquisition of the Leisure Group, which added 50,000 vacation homes to its portfolio, was a pivotal move in establishing itself as a major player in the European market. Subsequent acquisitions, such as Croatian vacation rental agency Direct Booker and Danish holiday home operator Bornholmske Feriehuse, further solidified its presence in the region.

Checkmyguest: A Strategic Fit for OYO’s European Ambitions

OYO’s acquisition of Checkmyguest is part of its broader strategy to diversify and enhance its portfolio, especially in the premium and luxury rental segments. By integrating a well-established company like Checkmyguest, which has built a solid reputation for managing high-end properties in Paris and other prime locations in France, OYO is signaling its intent to compete fiercely in the European market.

This acquisition also includes two critical divisions of Checkmyguest: HMG (previously known as Helpmyguest), which focuses on property renovation and upgrades, and Studio Prestige, a luxury rental apartment management business. Together, these units will enable OYO to offer a more comprehensive range of services to property owners and guests, enhancing its appeal in the premium rental market.

Checkmyguest: More Than Just A Traditional Vacation Rental Platform

Checkmyguest positions itself as a full-service property management powerhouse, going beyond basic listings to offer a suite of services that includes property renovation, maintenance, and guest management. Their mission is to transform commercial and non-residential spaces into high-quality, year-round rental homes that maximize returns for owners.

A Full-Service Solution: Unlike traditional vacation rental platforms that act as intermediaries, Checkmyguest manages the entire rental process—from property preparation to guest relations—providing a hands-off experience for property owners.

Year-Round Revenue Potential: Checkmyguest doesn’t limit itself to short-term stays. The company manages properties for both short and medium-term rentals, ensuring consistent income throughout the year, avoiding the seasonal dips that often affect the vacation rental market.

Unlocking Hidden Value: One of Checkmyguest’s standout capabilities is converting non-residential spaces into profitable rental properties, turning underutilized spaces into lucrative assets for property owners—a transformative approach in an industry often content with the status quo.

Why Checkmyguest Is a Perfect Fit for OYO

The acquisition of Checkmyguest is a natural extension of OYO’s expansion strategy, allowing it to diversify its offerings and strengthen its foothold in France: 

Fortifying Its French Foothold: France remains one of the most lucrative markets for vacation rentals, and OYO is keen to cement its position there. The acquisition of Checkmyguest brings a local heavyweight with deep market insights into OYO’s fold, reinforcing its presence in a region critical to its European ambitions.

Enhanced Property Management Offering: Checkmyguest’s specialized expertise in property management is a perfect match for OYO’s broader goals. This acquisition allows OYO to elevate the management of its European properties, ensuring the high standards that both property owners and travelers expect. It’s about setting the bar higher across OYO’s portfolio.

Boosting Direct Bookings: As OYO seeks to decrease its dependence on third-party platforms like Airbnb, the operational strengths of Checkmyguest become even more valuable. By enhancing the appeal and management of its properties, OYO aims to drive more direct bookings within its ecosystem, ultimately boosting profitability and control over the guest experience.

How Checkmyguest Fits Into OYO’s Strategy

Complementing the Belvilla Brand: OYO’s acquisition of the Leisure Group, which brought brands like Belvilla, DanCenter, and Traum-Ferienwohnungen under its wing, marked a significant expansion into the European market. The addition of Checkmyguest sharpens this strategy, injecting specialized property management expertise into OYO’s portfolio, particularly in the competitive French market.

Diversifying the Portfolio: By bringing Checkmyguest into the fold, OYO is not just adding another brand—it’s fortifying its portfolio with a robust property management component. This diversification is crucial for sustaining and enhancing the value of OYO’s vacation rental assets across Europe.

Localized Market Growth: OYO’s European expansion is heavily reliant on strategic acquisitions, and Checkmyguest’s deep local knowledge in France is a perfect fit. This acquisition arms OYO with the insights and expertise needed to manage properties more effectively and tap into new customer segments, giving it a competitive edge in a key market.

The Bottom Line

OYO’s acquisition of Checkmyguest is a calculated move to enhance property management, drive direct bookings, and integrate localized expertise into its global operations. This strategic effort signals OYO’s commitment to delivering high-quality, well-managed properties that meet the evolving needs of both property owners and travelers across Europe.

For vacation rental managers, this move highlights the growing demand for luxury rentals in Europe—a trend that cannot be ignored. The integration of Checkmyguest’s specialized expertise into OYO’s operations is poised to set new standards for property management, particularly in service quality and technological integration.

OYO’s focus on the premium segment reflects a broader market shift where excellence in management and guest experience is becoming increasingly crucial. This acquisition not only strengthens OYO’s competitive position in Europe but also underscores the importance for other players to diversify their service offerings and leverage technology to stay relevant.