OYO to acquire G6 Hospitality from Blackstone for $525 m in cash
22 Sep 2024
Oravel Stays, the parent company of hospitality and travel technology company OYO, has agreed to acquire economy lodging franchisor G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate, for $525 million in an all-cash deal.
Motel 6 brand has a franchise network of over 1,500 hotels across the United States and Canada, with a strong fee base and cash flow that generates gross room revenues of $1.7 billion for G6.
With its iconic Motel 6 and the Studio 6 Extended Stay brands, G6 Hospitality has made hospitality accessible to all while offering huge opportunity for franchisees to build on the legacy ownership.
OYO hopes to leverage its technology, a global distribution network and marketing skills to boost revenue growth of the Motel 6 and Studio 6 brands.
Blackstone expects to close the transaction in the fourth quarter of 2024, subject to customary closing conditions.
OYO, a new age multinational, has created a global platform that helps small businesses with hotels and homes to rent out rooms by using its technology and services and thereby increase revenue.
OYO, which entered the US market in 2019, has steadily expanded in the region, adding 100 hotels to its US portfolio in 2023 and currently operates over 320 hotels across 35 states. It hopes to add around 250 hotels in 2024.
Founded in 2012 by Ritesh Agarwal, OYO Rooms, also known as OYO Hotels and Homes, has built a network of over 175,000 properties and 1 million rooms across 800 cities in 80 countries, including India, Europe, the Americas and Southeast Asia.
