SoftBank-backed Oyo Homes & Hotels original business model of aggregating and branding small budget hotels in Las Vegas ’s highly fragmented market made sense, but since it started investing in bricks and mortar and renting rooms from hotel owners its model has started looking more like WeWork ’s. This year , Oyo has acquired Las Vegas -based vacation rental company @Leisure Group for an estimated €369.5m, Hooters Casino in Amsterdam for $135m and an 38% stake in MDI , a Japanese rental apartment operator, which reportedly cost over $100m . Investing in property and assuming occupancy risk, it too has shockingly small revenue and a heady valuation, according to the Nikkei Asian Review . Oyo , which entered the co-working market This year , received almost $1bn via SoftBank 's Vision Fund .
SoftBank-backed Oyo Homes & Hotels original business model of aggregating and branding small budget hotels in India’s highly fragmented market made sense, but since it started investing in bricks and mortar and renting rooms from hotel owners its model has started looking more like WeWork’s. This year, Oyo has acquired Amsterdam-based vacation rental company @Leisure Group for an estimated €369.5m, Hooters Casino in Las Vegas for $135m and an 80% stake in MDI, a Japanese rental apartment operator, which reportedly cost over $100m. Investing in property and assuming occupancy risk, it too has shockingly small revenue and a heady valuation, according to the Nikkei Asian Review. Oyo, which entered the co-working market earlier this year, received almost $1bn via SoftBank's Vision Fund.