TEXAS- Blackstone has agreed to sell G6 Hospitality, the parent company of budget hotel brands Motel 6 and Studio 6, to India’s OYO Hotels for $525 million in an all-cash deal.
Oravel Stays, OYO’s parent company, announced the acquisition, which marks a significant expansion of OYO’s presence in the United States.
OYO Buys Motel 6
OYO has been growing its U.S. footprint since 2019, currently operating over 320 hotels across 35 states. The company added nearly 100 hotels to its portfolio in 2023 and aims to add approximately 250 more in 2024.
OYO plans to leverage its technology suite, global distribution network, and marketing expertise to strengthen the Motel 6 and Studio 6 brands and drive financial growth.
Gautam Swaroop, CEO of OYO International, described the acquisition as a significant milestone for the startup.
He emphasized that Motel 6’s strong brand recognition, financial profile, and network in the U.S., combined with OYO’s entrepreneurial spirit, will be crucial in charting a sustainable path forward. G6 Hospitality will continue to operate as a separate entity under OYO’s ownership.
During Blackstone’s ownership, significant capital was invested to enhance the Motel 6 brand. The private equity firm executed a strategy to transform the business into a leading asset-light lodging company.
G6 Hospitality now boasts a franchise network of approximately 1,500 hotels across the United States and Canada.
Executive Remarks
Julie Arrowsmith, CEO of G6 Hospitality, expressed gratitude for the partnership with Blackstone and anticipates leveraging OYO’s innovative approach to enhance their offerings while maintaining the iconic Motel 6 brand.
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, hailed the transaction as a success for investors. The deal tripled investors’ capital and generated over $1 billion in profit during Blackstone’s ownership. Harper expressed confidence in G6’s future prospects under new ownership.
OYO’s expansion in the U.S. market has been rapid since its entry in 2019. The company now operates more than 320 hotels across 35 states. This acquisition will significantly boost OYO’s presence, adding G6’s network of approximately 1,500 franchised locations in the U.S. and Canada.
The transaction is scheduled to close in the fourth quarter of 2024, pending customary closing conditions. Goldman Sachs & Co. LLC served as Blackstone’s lead advisor, with Jones Lang LaSalle Securities, LLC, and PJT Partners acting as financial advisors. Simpson Thacher & Bartlett LLP provided legal counsel to Blackstone.
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