Motel 6, the iconic California brand, is being sold to an international hotel operator in a multi-billion-cash deal.
Associated Press (AP) Reported On Saturday, the hotel chain announced that it would be “acquired by the parent company of India-based hotel operator Oyo.”
The investment firm known as Blackstone said Friday that the deal is worth $525 million in cash and also includes the sale of the Studio 6 motel brand. Blackstone owns the motel chain's parent company.
The AP article continues:
OYO was founded in India about 10 years ago. Expanding our footprint The company has expanded its hotel business in the U.S. over the past few years, currently operating 320 hotels in 35 states and aiming to add another 250 this year.
…
Blackstone acquired Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant has invested heavily in the brands and pursued a strategy to franchise the chains, according to the report.
The Motel 6 franchise operates more than 1,450 hotels in 49 states, including several in Canada. New York Post Reported He said Saturday that the big cash deal is expected to close by the end of the year.
Motel 6 was founded in Santa Barbara, California in 1962, and its first location is still open today. Website But “a lot has changed for the motel chain that pioneered the first true economy motel designed for the no-frills traveler.”
The site said the original rate was $6 a night and described the chain as an “American staple.”
“Our iconic brand promise is to provide clean, comfortable rooms and great experiences at every location across the United States and Canada. Motel 6 is a household name and synonymous with quality and value. We have the highest brand recognition of any economy lodging brand in the United States,” the website reads.
In 2018, Motel 6 was forced to pay more than $7.6 million to settle a class-action lawsuit that alleged the chain gave guest lists to US Immigration and Customs Enforcement (ICE) agents, Breitbart News reported at the time.
