Oyo, India’s travel technology company that also boasts of a large presence in the UAE, has purchased the popular Motel 6 and Studio 6 chain of economy hotels in the United States.
Oravel Stays, the parent company of Oyo, acquired G6 Hospitality for $525 million from Blackstone Real Estate in an all-cash transaction. The deal is expected to close before the end of the year
G6 Hospitality has nearly 1,500 economy lodging locations under the two brands. Motel 6’s franchise network produces gross room revenues of $1.7 billion. Its name originates from the fact that when the first Motel 6 opened in 1962 in Santa Barbara, California, the room rates were fixed at $6 per night.
Oyo has steadily expanded its footprint in the United States since its launch in the region in 2019 and currently operates over 320 hotels across 35 states. it added nearly 100 hotels to its US portfolio last year, and aims to add nearly 250 in 2024.
Gautam Swaroop, CEO, Oyo International, said: “This acquisition is a significant milestone for a startup company like ours 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.”
Blackstone purchased Motel 6 in 2012 for $1.9 billion. Under its ownership, the private equity firm invested significant capital to create value and enhance the Motel 6 brand.
Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality, added: “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 travellers have trusted for over six decades.”
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said: “This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period.”
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