Motel 6 acquired by India-based OYO hotels in $525 million deal: A fresh start

Motel 6's mum or dad firm has been acquired by India-based OYO Hotels in a $525M all-cash transaction, in line with a press launch. (Source: File)

India-based resort operator OYO is buying Motel 6's mum or dad firm, G6 Hospitality, for $525 million in an all-cash transaction, in line with a launch from Blackstone Real Estate.

Oravel Stays, which owns international journey tech firm OYO, operates over 320 hotels in 35 states throughout America.

OYO first broke into the American market with an aggressive launch in 2019. OYO acquired nearly 100 hotels in 2023 and seeks so as to add round 250 hotels to that portfolio for 2024, in line with a Blackstone Real Estate launch.

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G6 Hospitality is the mum or dad firm of Motel 6 and Studio 6 manufacturers, which is estimated to have gross room revenues of $1.7 billion throughout its franchise community.

A Motel 6 signal in Coeur d'Alene, Idaho. (Don and Melinda Crawford/UCG/Universal Images Group by way of Getty Images / Getty Images)

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO International CEO, mentioned in a launch.

“Motel 6’s strong brand recognition, financial profile and network in the U.S., 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.”

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Blackstone “invested significant capital” to “enhance the Motel 6 brand,” in line with the true property agency. There are round 1,500 Motel 6 and Studio 6 franchise properties in Canada and the U.S.

Ticker	Security	Last	Change	Change %
OYOCF	OYO	16.553161	–	–
BX	BLACKSTONE INC.	158.14	-1.55	-0.97%

“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter,” mentioned Julie Arrowsmith, president and CEO at G6 Hospitality.

Signage for an Oyo resort operated by Oyo Hotels Japan G.Ok. in Tokyo. (Toru Hanai/Bloomberg by way of Getty Images / Getty Images)

“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.”

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According to Blackstone, the all-cash transaction is predicted to shut in the fourth quarter of 2024.

G6 Hospitality didn't instantly return FOX Business' request for remark.