SoftBank To Partner OYO In Brazil And Mexico
SoftBank Group is directly managing the hospitality startup OYO’s operations in Latin America through a joint venture which will control all hotels in the region, Henrique Weaver, the head of OYO Brazil told in an interview on Friday (September 4).
SoftBank will invest in OYO Latam through its $5 Bn Latin America fund. OYO Latam will take over 1,000 hotels mainly in Brazil and Mexico, Weaver added. Weaver did not disclose the amount it will invest but said that both companies would have equal representation on the board.
The move follows as OYO, valued at $10 Bn in its most recent fundraising round, has been forced to cut costs and rein in its expansionist strategy in global markets by reducing its hotel footprint and laying off employees after revenues took a hit from the coronavirus pandemic.
On its partnership, SoftBank said it initiated with OYO in Latin America in 2019 and the investment has been recently formalised with the creation of OYO Latam and the board.