An India-based hotel management company is acquiring Motel 6, a leading American budget motel chain.
Olabel Stays, the parent company of global travel technology company Oyo, has announced that it will acquire franchisor G6 Hospitality and its extended-stay brands Motel 6 and Studio 6 for $525 million to current owner Blackstone. Blackstone, the New York-based investment firm, said in a statement. He said.
Blackstone acquired G6 in 2012 for $1.9 billion and has generated “more than $1 billion in profits” since then, Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in a news release.
G6 has a large share of the economy lodging market with annual total room revenue of $1.7 billion.
Motel 6's franchise network includes more than 1,450 hotels in 49 states and five Canadian provinces, many of which are located near airports, highways and other major roads. Studio 6 has more than 200 properties in locations such as Atlanta, Dallas, Houston, Seattle and Canada.
Oyo already operates more than 320 hotels across 35 states, including Oyo Times Square, primarily in the South and West, and plans to add approximately 250 more this year.
The Motel 6 transaction is expected to close by the end of the year.
