New Delhi: Oravel Stays, the parent company of OYO, has agreed to buy G6 Hospitality, the operator of the Motel 6 and Studio 6 brands, from Blackstone Real Estate in a $525 million all-cash deal. The purchase is expected to be completed in the fourth quarter of 2024, subject to regulatory approvals. OYO plans to use its technology and network to improve these brands while keeping their unique identities intact.
Expanding in the US Market
The acquisition supports OYO’s goal to expand further in the US as it prepares for a possible IPO. Since launching in the US in 2019, OYO has grown steadily, now managing over 320 hotels in 35 states. In 2023 alone, OYO added around 100 hotels and aims to add another 250 in 2024.
Gautam Swaroop, CEO of OYO International, said this deal is a major step forward, combining Motel 6’s strong reputation in the US with OYO’s innovative approach. “Motel 6’s well-known brand, solid financial position, and extensive network in the US, paired with OYO’s startup spirit, will help us build a sustainable future,” Swaroop noted. Motel 6 and Studio 6 will continue to operate as separate brands.
About G6 Hospitality
Motel 6 generates about $1.7 billion in revenue and has been a strong earner for G6 Hospitality. OYO plans to use its technology and global reach to enhance Motel 6 and Studio 6 further and drive financial growth. Blackstone, the current owner, has invested heavily in the Motel 6 brand, expanding it into a franchise network of nearly 1,500 hotels across the US and Canada.
Julie Arrowsmith, CEO of G6 Hospitality, expressed confidence in OYO’s ability to maintain the iconic Motel 6 brand, which has been trusted by travelers for over 60 years.
Goldman Sachs & Co. LLC was Blackstone’s lead advisor, with Jones Lang LaSalle Securities, LLC, and PJT Partners serving as financial advisors. Simpson Thacher & Bartlett LLP acted as Blackstone’s legal advisor.
