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OYO Spent $525 Million to acquire a Hotel Chain called G6 Hospitality. G6 has an network of over 1500 hotels in US and Canada and generates an revenue of about $1.7 Billion. What do you think about this move?

Havish Gupta

Figuring Out • 7m

fr! Purchasing a $1.5 B revenue company for $500 Million is a crazy cheap deal. If I'm not wrong, the $1.5 Billion revenue would be counted in OYO's consolidated revenue and that would increase it's Valuation by atleast $3 Billion (2 time Revenue Multiple)

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The total claim from the creditors is about $1.5 Billion. I Don't think that creditors would even get 20% of it. Btw the total funding amount is over $5 Billion

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