Skip to main content

Motel 6 sold to India-based OYO Hotels for $525 million: 'New chapter'

OYO Hotels announced this week it is acquiring iconic brand Motel 6 in an all-cash transaction with G6 Hospitality, its parent company.

India-based hotel operator OYO is acquiring Motel 6's parent company, G6 Hospitality, for $525 million in an all-cash transaction, according to a release from Blackstone Real Estate.

Oravel Stays, which owns global travel tech company OYO, operates over 320 hotels in 35 states across America. 

OYO first broke into the American market with an aggressive launch in 2019. OYO acquired almost 100 hotels in 2023 and seeks to add around 250 hotels to that portfolio for 2024, according to a Blackstone Real Estate release.

10K UNIONIZED HOTEL WORKERS HOLD STRIKES ACROSS MULTIPLE CITIES, DEMAND HIGHER WAGES, INCREASED STAFFING

G6 Hospitality is the parent company of Motel 6 and Studio 6 brands, which is estimated to have gross room revenues of $1.7 billion across its franchise network.

"This acquisition is a significant milestone for a startup company like us to strengthen our international presence," Gautam Swaroop, OYO International CEO, said in a release. 

"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."

MARRIOTT SUES FRANCHISEE FOR TURNING NEW YORK HOTEL INTO MIGRANT SHELTER

Blackstone "invested significant capital" to "enhance the Motel 6 brand," according to the real estate firm. There are around 1,500 Motel 6 and Studio 6 franchise properties in Canada and the U.S.

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

"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."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

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

G6 Hospitality did not immediately return FOX Business' request for comment.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.