OYO in talks with Berggruen Holdings to acquire Keys Hotels
SoftBank-backed Oyo Hotels and Homes is in talks with Los Angeles-based Berggruen Holdings to buy their Keys Hotels in India.
Berggruen Holdings is the owner of Berggruen Hotels in India, which was founded in September 2006 for building and operating business hotels under the Keys brand. Berggruen Holdings is a $2-billion private equity and venture capital firm founded by Nicholas Berggruen.
Keys Hotels has a portfolio of about 20 owned, managed and franchised hotels in locations like Mumbai, Chennai, Pune, Gurugram, Shirdi, Tirupati and Mahabaleshwar.
A source familiar with the developments said, "Oyo has approached Berggruen Holdings and due diligence has been carried out. A lot of investment has gone in Keys, but the business has been languishing. The valuations have to make sense. Keys was looking at a valuation of about $ 125 million."
"Oyo has a lot of cash and is looking at co-working and co-living spaces. Keys has hotels in locations such as Whitefield in Bengaluru which could fit in with their-living focus," a source added.