Oyo purchases iconic Motel 6 brand; Aims US expansion

Oravel Stays, the parent company of the hospitality firm OYO Hotels has reached an agreement to acquire G6 Hospitality, the parent company of budget hotel brands Motel 6 and Studio 6, from Blackstone Real Estate for $525 million (approx. INR 4382 crore) in an all-cash transaction.

This acquisition was confirmed in a recent statement from Oravel Stays.

Since its launch in the United States in 2019, OYO claims that it has steadily expanded its operations and currently manages over 320 hotels across 35 states.

In 2023, the company added nearly 100 hotels to its US portfolio and plans to incorporate approximately 250 more in 2024. OYO intends to utilise its technology suite and global distribution network to enhance the Motel 6 and Studio 6 brands and drive financial growth.

Acquisition and company’s future

Gautam Swaroop, CEO of OYO International, described the acquisition as a major milestone for the company in strengthening its international presence.

He added that Motel 6's established brand recognition and financial profile, combined with OYO’s entrepreneurial approach, would be crucial for the company’s future. G6 Hospitality will continue to operate as a separate entity following the acquisition.

Under Blackstone's ownership, substantial capital was invested to enhance the Motel 6 brand, transitioning the business into a leading asset-light lodging company with a franchise network of around 1,500 hotels in the US and Canada.

The transaction is anticipated to close in the fourth quarter of 2024, pending customary closing conditions.

Goldman Sachs & Co. LLC served as Blackstone’s lead advisor, while Jones Lang LaSalle Securities, LLC and PJT Partners acted as financial advisors.

Simpson Thacher & Bartlett LLP provided legal advice to Blackstone.