US Entry With Hooters

In its first purchase in the US, Softbank-backed Oyo Hotels and Homes has bought the Hooters Casino Hotel in Las Vegas. Oyo, along with Highgate, a US-based real estate investment and hospitality management company, reportedly shelled out nearly $135 million to buy this property on the Las Vegas strip. Hooters will be re-branded as Oyo Hotel and Casino. A few months ago, Oyo had announced it would invest $300 million in the US.

Catering across several budget price points, Oyo now claims to be the third-largest hotel chain in the world. However, this six-year-old company is yet to be profitable. Valued at around $10 billion, founder Ritesh Agarwal recently bought back shares worth around $2 billion to significantly increase his stake in the company. An unprecedented transaction in the Indian start-up space, this had raised eyebrows questioning the move.