Oyo parent to buy G6 Hospitality from Blackstone for $525m
ABU DHABI, September 24, 2024
Oravel Stays, the parent company of India-based Oyo Hotels & Rooms, has agreed to acquire G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash transaction.
G6 is the franchisor and parent company of Motel 6 and Studio 6 brands with a network of about 1,500 properties across the United States and Canada.
In 2019, OYO had launched its base in the US where it currently has more than 320 hotels and plans to add a further 250 this year.
Oyo partnered with Highgate to reflag Las Vegas' Hooters hotel and casino to the 657-key Oyo Hotel and Casino.
Oyo added nearly 100 US properties to its portfolio in 2023 and plans to add about 250 in 2024.
The Motel 6 brand debuted in Santa Barbara, California, in 1962 with a name reflecting its early price of just $6 per night, designed for freeway travellers.
On the strategic buy, Gautam Swaroop, CEO of OYO International said: "It 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," he added.
Motel 6 generates gross room revenue of $1.7 billion according to a statement from Blackstone. OYO plans to leverage its technology and distribution network to boost the Motel 6 and Studio 6 brands.
Blackstone had acquired the Motel 6 and Studio 6 brands from French hotel company Accor in 2012 in a deal valued at $1.9 billion. Blackstone launched G6 Hospitality in 2012 to serve as the franchisor and management company for both brands.
On the deal, Julie Arrowsmith, CEO at G6 Hospitality, said: "We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter."
"Oyo’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades," he added.-TradeArabia News Service
