Global travel technology company OYO acquires G6 Hospitality

USA – Oravel Stays, the parent company of the global travel technology company OYO,  has acquired G6 Hospitality, an economy lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands.

Oravel Stays has acquired it from Blackstone Real Estate for US$525 million, in an all-cash transaction.

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. In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add ~250 hotels in 2024. 

Motel 6’s franchise network produces gross room revenues of US$1.7 billion, which generates a strong fee base and cash flow for G6. 

OYO will leverage its comprehensive technology suite, global distribution network, and marketing expertise to strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.

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

Under its ownership, Blackstone invested significant capital to create value and enhance the Motel 6 brand. 

This included executing a strategy to transform the business into a leading asset-light lodging company with a franchise network of 1500 hotels across the United States and Canada.

“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter,” said Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality.

“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 travelers have trusted for over six decades.”

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

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