In a significant move to bolster its presence in the U.S. hospitality market, OYO has announced its acquisition of G6 Hospitality, the parent company of the well-known Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million in an all-cash transaction. The deal is anticipated to close in the fourth quarter of 2024, pending customary closing conditions.
This acquisition positions OYO to leverage its technology, global distribution network, and marketing expertise to drive sustained financial growth for the Motel 6 and Studio 6 brands. Currently, Motel 6’s franchise network generates gross room revenues of $1.7 billion, providing G6 with a robust fee base and consistent cash flow.
Founded in 1962, Motel 6 has a long history in the lodging industry, having been acquired by Blackstone in 2012 for $1.9 billion. Under Blackstone’s ownership, significant investments were made to modernize the brand, transforming it into a leading asset-light lodging company with approximately 1,500 hotels across the U.S. and Canada.
OYO International’s CEO, Gautam Swaroop, expressed enthusiasm about the acquisition, stating, “This marks a significant milestone for us as it strengthens our international presence. The iconic Motel 6 brand, combined with OYO’s entrepreneurial spirit, will pave a sustainable path forward.”
G6 Hospitality’s President and CEO, Julie Arrowsmith, acknowledged the successful partnership with Blackstone, highlighting that OYO’s innovative approach will enhance the company’s offerings while preserving the trusted Motel 6 brand.
Blackstone’s Head of Real Estate Asset Management Americas, Rob Harper, remarked on the success of the investment, noting that the business plan resulted in more than tripling their capital and generating over $1 billion in profit.
Goldman Sachs & Co. LLC served as Blackstone’s lead advisor, with Jones Lang LaSalle Securities, LLC, and PJT Partners also providing financial advisory services. Simpson Thacher & Bartlett LLP acted as Blackstone’s legal advisor.
This acquisition aligns with OYO’s strategy to expand its U.S. operations, which began in 2019. The company now manages over 320 hotels across 35 states and aims to grow its portfolio by an additional 250 hotels by 2024.
As OYO continues to seek opportunities in the U.S. and Europe, the company is also turning a profit, reporting a net profit of INR 229.5 crore for FY24, a remarkable recovery from a net loss of INR 1,286.5 crore in the previous year. With plans to further increase profitability, OYO is positioning itself for sustainable growth in the competitive hospitality sector.
