The OYO Hotels and Homes is reportedly in advanced talks with the Lovely Professional University (LPU) to acquire their student accommodation assets.
OYO is said to be looking forward to expanding into areas beyond hotels with what could be $200-million (Rs. 1,400 Crores) deal, as per reports.
Owned by Mittals, Lovely Professional University is considered one of the largest in the country with a huge campus. And OYO’s bid for its assets has turned many heads in the industry.
Though there were other bidders for this asset, Oyo beat them all, it is reported. Among the others who wanted to take over this asset are HDFC, Good Host Spaces, a startup funded by Goldman Sachs and Blackstone.
According to reports, the Mittal family and LPU’s promoters, are selling the asset to generate liquidity and fund future expansion.
The only issue being pointed out by those who are knowledgeable about this deal point out that the university management may retain the authority to decide on the rent and other charges being collected from the students by Oyo. This might restrict the legroom available to Oyo.
Meanwhile, did you know that earlier this year OYO invested in Las Vegas by buying Hooters Casino Hotel and made its first US deal?
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