New Delhi – Oravel Stays, the parent company of OYO, has announced a significant $525 million all-cash deal to acquire G6 Hospitality, the operator of Motel 6 and Studio 6 brands, from Blackstone Real Estate. The acquisition is expected to close in the fourth quarter of 2024, pending regulatory approvals. OYO plans to leverage its cutting-edge technology and vast network to enhance the Motel 6 and Studio 6 brands while preserving their unique identities.
OYO’s Strategic Expansion in the US
The acquisition is aligned with OYO’s aggressive expansion strategy in the US as the company prepares for a potential IPO. Since its launch in the US in 2019, OYO has rapidly expanded, now overseeing more than 320 hotels across 35 states. In 2023 alone, OYO added approximately 100 hotels to its portfolio, with plans to add an additional 250 by the end of 2024.
OYO International CEO Gautam Swaroop commented, “This acquisition is a pivotal move for OYO. Motel 6’s strong brand presence in the US, coupled with OYO’s innovative and technology-driven approach, will foster sustainable growth.” Both Motel 6 and Studio 6 will continue to operate as independent brands under OYO’s ownership.
G6 Hospitality and Motel 6’s Legacy
Motel 6, a trusted name in budget hospitality for over 60 years, generates annual revenues of around $1.7 billion. OYO plans to utilize its global reach and technology-driven expertise to further enhance the performance of Motel 6 and Studio 6, driving both financial and operational improvements.
Blackstone has made significant investments in Motel 6, growing it into a franchise network that spans nearly 1,500 hotels across the US and Canada. Julie Arrowsmith, CEO of G6 Hospitality, expressed confidence in OYO’s ability to uphold the legacy and trust of the Motel 6 brand.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor, with financial guidance from Jones Lang LaSalle Securities, LLC, and PJT Partners. Simpson Thacher & Bartlett LLP served as Blackstone’s legal counsel during the transaction.
