Motel 6's parent company has been acquired by India-based OYO Hotels in an all-cash deal worth $525 million, according to a press release. (Source: File)
India-based hotel operator OYO is acquiring Motel 6 parent company G6 Hospitality in an all-cash deal worth $525 million, according to a statement from Blackstone Real Estate.
Oravel Stays, which owns global travel technology company OYO, operates over 320 hotels across 35 states across the United States.
OYO first entered the US market with an aggressive expansion in 2019. According to a statement from Blackstone Real Estate, OYO plans to acquire around 100 hotels in 2023 and add around 250 hotels to its portfolio in 2024.
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G6 Hospitality is the parent company of the Motel 6 and Studio 6 brands and is estimated to generate $1.7 billion in total room revenue across its franchise network.
Motel 6 sign in Coeur d'Alene, Idaho. (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images/Getty Images)
“This acquisition marks an important milestone for a start-up like us in strengthening our international presence,” OYO International CEO Gautam Swaroop said in a press release.
“Motel 6's strong brand recognition, financial strength and U.S. reach, combined with OYO's entrepreneurial spirit, will allow the company to continue operating as an independent organization and play a key role in charting a path to a sustainable future.”
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The real estate firm said Blackstone “invested significant capital to strengthen the Motel 6 brand.” There are approximately 1,500 Motel 6 and Studio 6 franchised properties in Canada and the United States.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| Oyo CF | Oyo | 16.553161 | – |
– |
| Vex | Blackstone Co., Ltd. | 158.14 | -1.55 |
-0.97% |
“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter,” said Julie Arrowsmith, president and CEO of G6 Hospitality.
Signboard for an OYO hotel operated by OYO Hotels Japan LLC in Tokyo. (Toru Hanai/Bloomberg via Getty Images/Getty Images)
“OYO's innovative approach to hospitality will enable us to enhance service and value for our guests while preserving the iconic Motel 6 brand that travelers have trusted for more than 60 years.”
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The all-cash transaction is expected to close in the fourth quarter of 2024, Blackstone said.
G6 Hospitality did not immediately respond to FOX Business' request for comment.
