India-based hotel operator OYO has announced its acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, in an all-cash deal valued at $525 million, according to a press release from Blackstone Real Estate. OYO, owned by Oravel Stays, operates over 320 hotels across 35 U.S. states and has been expanding aggressively in the American market since its 2019 launch.
In 2023, OYO added nearly 100 hotels to its portfolio and plans to increase that number by around 250 more in 2024. G6 Hospitality, which oversees the Motel 6 and Studio 6 brands, generates approximately $1.7 billion in gross room revenue through its franchise network.
“This acquisition is a major milestone for a startup like us, helping to strengthen our international presence,” said Gautam Swaroop, OYO International CEO. He emphasized that Motel 6’s strong brand recognition and financial profile, combined with OYO’s entrepreneurial drive, will help chart a sustainable future for the company. Despite the acquisition, Motel 6 will continue to operate as a separate entity.
Blackstone, which has invested heavily in enhancing the Motel 6 brand, noted that there are around 1,500 Motel 6 and Studio 6 franchise locations across the U.S. and Canada. Julie Arrowsmith, president and CEO of G6 Hospitality, expressed gratitude for the partnership with Blackstone and looked forward to the next chapter with OYO. She also highlighted OYO’s innovative approach to hospitality, which she believes will enhance the Motel 6 brand while maintaining the trust it has built with travelers over the past six decades.
The transaction is expected to close in the fourth quarter of 2024. G6 Hospitality has not yet responded to requests for further comment.
Source: foxbusiness.com