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 deal, as per reports. LPU is one of the largest private universities in the country with a very large campus near Jalandhar and OYO's bid for its assets has turned many heads in the industry. Earlier this year OYO invested in Las Vegas by buying Hooters Casino Hotel and made its first US deal.

OYO in talks with LPU?

According to reports, the Mittal family and LPU’s promoters, are selling the asset to generate liquidity and fund future expansion. It is also reported that the transaction details are still in process and will soon be finalised and this deal may be structured with a multi-decade, long-term lease. OYO has pre-empted the other bidders on the deal, with reports naming HDFC and Goldman Sachs-backed Good Host Spaces as other potential bidders, besides alternatives assets major Blackstone.

The residential capacity of LPU campus is about 25,000-30,000 students ranging from individual rooms to dormitories to apartments. The cost of the facilities provided in the campus ranges from Rs 30,000 to Rs 1,58,000, indoor stadium and gym also included. According to reports, In the last financial year, the asset has gross revenues of over $30 million and net operating income of $23 million. There is a possibility for additional monetisation as the student intake increases.

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Global expansion spree

Recently OYO has signed a deal to buy the Hooters Casino Hotel in the US gambling and entertainment hub. The 657-room property will be rebranded the OYO Hotel & Casino Las Vegas, with a makeover expected to be completed by the end of the year. It's OYO's first property in the city. The deal is worth around $135 million. Highgate, a US hospitality investment firm that partnered with OYO on the purchase, will take over the management of the hotel, while Nevada-based Paragon Gaming will continue operating the 35,000-square-foot casino. Earlier this year, OYO also acquired Amsterdam-based vacation rental company Leisure for $415 million.

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OYO attracts international investors 

Founded in 2013, OYO Hotels & Homes' current portfolio combines fully operated real estate comprising more than 23,000 hotels and 46,000 vacation homes. In July, OYO founder Ritesh Agarwal announced plans to increase shareholding from 10% to 30% as part of the $2 billion round by buying shares of early investors Lightspeed and Sequoia. The deal valued the company at around $10 billion. The company has attracted some of the world's leading investors, including Airbnb, SoftBank Vision Fund, Lightspeed Venture Partners, Greenoaks Capital, Sequoia India, and Hero Enterprise. 

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