Travel Technology platform Oyo has agreed to buy Blackstone Real Estate-backed US affordable hotel chain Motel6 and Studio6 brands in an all-cash transaction worth $525 million. The deal will be all-cash. Indian unicorn Oyo is eyeing expansion in the US. Oyo's parent company Orvel Stage announced on Saturday that it has agreed to acquire G6 Hospitality.
Economy Lodging Franchisor is G6 Hospitality
G6 Hospitality is a leading economy lodging franchisor and the parent company of Motel 6 and the chain's subsidiary hotel brand Studio 6. The transaction is anticipated to close in the fourth quarter of 2024. The deal is subject to customary closing conditions. Motel 6's franchise network generates gross room revenues of $1.07 billion, generating a strong fee base and cash flow for G6. Oyo said it will leverage its global distribution network and marketing expertise along with its comprehensive technology suite to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
Oyo operates more than 320 hotels in America
Oyo has steadily expanded its footprint in the US since its launch in the region in 2019. The company operates more than 320 hotels in 35 states there. In 2023, Oyo added about 100 hotels to its US portfolio and aims to add about 250 hotels in 2024. Gautam Swarup, Chief Executive Officer (CEO) of Oyo International, said, “This acquisition is an important milestone for a startup company like us to strengthen our international presence.”
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