Oravel Stays, parent company of global travel tech company OYO, has announced that it will acquire G6 Hospitality, parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million. The all-cash transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
OYO has expanded its footprint in the United States since its launch in the region in 2019, and operates more than 320 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add 250 hotels in 2024. Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6. OYO will leverage its technology suite and its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
“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,” said Gautam Swaroop, CEO, OYO International.
Under its ownership, Blackstone invested significant capital to create value and enhance the Motel 6 brand, including executing a strategy to transform the business into a leading asset light lodging company with a franchise network of 1500 hotels across the United States and Canada.
For more information, visit www.g6hospitality.com.
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