OYO to acquire G6 Hospitality for £394 million in all-cash deal

OYO, which launched in the US in 2019, currently operates over 320 hotels across 35 states.

• EasternEye
• 21 September, 2024

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By: EasternEye

INDIA-based Oravel Stays, the parent company of travel technology firm OYO, has agreed to acquire G6 Hospitality, the franchiser of Motel 6 and Studio 6 brands, for £394 million from Blackstone Real Estate. The all-cash transaction is expected to close in the fourth quarter, subject to customary closing conditions.

OYO, which launched in the US in 2019, currently operates over 320 hotels across 35 states. The company plans to add around 250 hotels to its network this year, leveraging its technology suite, global distribution network, and marketing expertise.

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

G6 Hospitality’s network includes approximately 1,500 hotels across the U.S. and Canada, generating £1.28 billion in gross room revenues. Julie Arrowsmith, President and CEO of G6, noted, “OYO’s innovative approach to hospitality will allow us to enhance our offerings and add great value to our guests while maintaining the iconic Motel 6 brand.”

Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said the deal concluded a business plan that tripled investors’ capital and generated over £751 million in profit during Blackstone’s hold period.

Goldman Sachs & Co. LLC served as Blackstone’s lead advisor, with Jones Lang LaSalle Securities, LLC, PJT Partners, and Simpson Thacher & Bartlett LLP also involved in the transaction.