OYO steps into student accommodation, in talks with Lovely Professional University: Report

OYO Hotels and Homes is moving beyond hotels and is in talks with Lovely Professional University (LPU) to acquire its student accommodation, reported ET.

The deal of the startup with one of the largest private universities is said to be of around $200 million. Blackstone was involved in evaluating the deal.

The details of the partnership is being finalized, as per sources to the daily, and maybe structured as a long-term lease. The Mittal family-promoted LPU is looking to generate liquidity for future expansion plans. Other bidders in the deal included HDFC, Good Host Spaces and Blackstone. OYO pre-empted the other bidders as per the report.

Moneycontrol could not independently verify the report.

LPU might continue to hold the rights on how much the accommodation will cost for the students after the deal to make it affordable. Currently, the residential capacity of the private institute is around 25,000-30,000 students with options of single or sharing occupancy and apartments. With additional recreational facilities of gym and stadium, the asset made over $30 million and a net operating income of $23 million for the last financial year.

OYO’s intention to expand was seen in its recent accusation of Hooters Casino Hotel in Las Vegas.

“With OYO Life, we have introduced India’s fastest-growing long-term fully managed housing rental solution for millennials and young professionals while being excited about student housing opportunity. As a company policy, we do not comment on market speculations,” said an OYO spokesperson to the daily.