OYO Rooms, one of the world’s largest multinational online travel and hospitality platforms based in India, via its subsidiary OYO Vacation Homes, acquired 100% of shares in Direct Booker, the top vacation rental agency in Dubrovnik specializing in vacation rental management and technology. GRUBISIC & Partners acted as the exclusive financial advisor to the management and shareholders of Direct Booker in the transaction process.
Information about the Acquirer
Headquartered in Guargaon, India, OYO Rooms is a privately held multinational OTA with presence in more than 80 countries worldwide, making it one of the largest in the industry. It was founded in 2012 by Ritesh Agarwal, initially consisting mainly of budget hotels. Within less than a decade, the start-up quickly expanded globally, with thousands of hotels and vacation homes and millions of rooms in its portfolio today, achieving its rapid expansion by using a technology-driven franchise model. With over 5,000 employees, OYO Rooms generated USD 550 million of revenue in 2021. Over its lifespan, the company has made a number of acquisitions, integrating brands such as @Leisure, Belvilla, DanCenter, Traum-Ferienwohnungen, and many others. Direct Booker is added to its European branch OYO Vacation Homes, which manages over 140,000 holiday homes across 70 countries.
Information about the Target
Direct Booker is a leading Croatian short-term rental agency with management and IT services, based in Dubrovnik. The company manages 3,250 vacation homes, and has serviced over 2 million guests thus far. It started its business in 2010 by managing bookings for a small number of rentals. It quickly became one of the top vacation rental agencies in Dubrovnik and Croatia offering management in the process of booking, including online advertising over the biggest websites, guests communication, charges and VAT regulation, revenue management, facility management, transportation and transfer services, as well as developing Booker Tools, a proprietary property and channel management software system. Direct Booker underwent a major modernization period which ended in 2019 with the company growing into a modern IT/tourist company that offers high-level vacation rental solutions using a highly sophisticated property and channel management system.
Transaction rationale
With the acquisition of Direct Booker, OYO Rooms, via its subsidiary OYO Vacation Homes, boosts its presence on the Croatian short-term property rental market, adding 3,250 new units in this market niche, which has a high growth potential due to holidaymakers’ growing preference for private properties. The union will also unlock powerful synergies, with Direct Booker being able to utilize OYO’s resources for further developing and expanding its IT solutions worldwide. Former owners Nino Dubretić and Nikola Grubelić, as well as IT expert Ivan Bogoje, who continue to manage Direct Booker, have been provided with a strong global partner who will support further growth of the company.
