OYO parent company Oravel Stays is acquiring budget accommodation specialist G6 Hospitality for $525 million from Blackstone Real Estate.
G6 is the franchisor and parent company of Motel 6 and Studio 6 brands with a network of about 1,500 properties across the United States and Canada.
In 2019, India-based OYO launched in the U.S. where it currently has more than 320 hotels and plans to add a further 250 this year.
Gautam Swaroop, CEO of OYO International described the acquisition as a “significant milestone for a startup company like us to strengthen our international presence.”
“Motel 6’s strong brand recognition, financial profile and network in the US, combined with OYO’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity,” he added.
Motel 6 generates gross room revenue of $1.7 billion according to a statement from Blackstone. OYO plans to leverage its technology and distribution network to boost the Motel 6 and Studio 6 brands.
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“OYO’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades,” said Julie Arrowsmith, president and CEO of G6 Hospitality.
Blackstone originally acquired the Motel 6 and Studio 6 brands from French hotel giant Accor in 2012 for $1.9 billion.
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” said Rob Harper, head of Blackstone Real Estate Asset Management Americas.
“We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.”
Earlier this year OYO announced funding of $174 million in a Series G round.
The G6 Hospitality transaction is expected to close in the fourth quarter of 2024.