MUMBAI:
Oyo
is acquiring US-based
G6 Hospitality
, the economy lodging franchisor and parent company of the iconic
Motel 6
and Studio 6 brands, from
Blackstone
Real Estate in a $525 million all-cash deal, the startup said on Saturday.
Oyo has been expanding its footprint in the US since its launch in the region in 2019 and currently operates over 320 hotels across 35 states.
Plans are afoot to add another 250 hotels to its US portfolio this year. Oyo will build on this acquisition by leveraging its technology stack and global distribution network to further strengthen the Motel 6 and Studio 6 brands. Motel 6’s franchise network produces gross room revenues of $1.7 billion, generating a healthy fee base and cash flow for G6.
“This acquisition is 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,” Gautam Swaroop, CEO at Oyo International said in a statement.
Under its ownership, Blackstone invested significant capital to build the Motel 6 brand and transformed the business into an asset light lodging company with a franchise network of about 1500 hotels across the US and Canada.
“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. 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,” said Rob Harper, head of Blackstone Real Estate Asset Management Americas.
The transaction is expected to close in the fourth quarter of 2024.
