OYO to acquire iconic Motel 6 brand in $525 million all-cash deal
The Hindu
OYO to acquire Motel 6 and Studio 6 from Blackstone for $525 million, aiming for U.S. expansion.
IPO-bound travel tech platform OYO on Saturday (September 21, 2024) announced it has agreed to acquire iconic American budget hotel chain Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million in an all-cash transaction, as the Indian unicorn eyes expansion in the U.S.
Oravel Stays, the parent company of OYO stated that it has agreed to acquire G6 Hospitality, the leading economy lodging franchisor and parent company of Motel 6 and the chain's offshoot hotel brand, Studio 6.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
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 comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth, it stated.
The travel tech platform has steadily expanded its footprint in the U.S. since its launch in the region in 2019 and operates over 320 hotels across 35 states.
In 2023, OYO added nearly 100 hotels to its U.S. portfolio and aims to add about 250 hotels in 2024.
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