India-based hotel operator OYO is acquiring Motel 6's parent company, G6 Hospitality, for $525 million in an all-cash transaction, according to a release from Blackstone Real Estate.
Oravel Stays, which owns global travel tech company OYO, operates over 320 hotels in 35 states across America.
OYO first broke into the American market with an aggressive launch in 2019. OYO acquired almost 100 hotels in 2023 and seeks to add around 250 hotels to that portfolio for 2024, according to a Blackstone Real Estate release.
G6 Hospitality is the parent company of Motel 6 and Studio 6 brands, which is estimated to have gross room revenues of $1.7 billion across its franchise network.
"This acquisition is a significant milestone for a startup company like us to strengthen our international presence," Gautam Swaroop, OYO International CEO, said in a release.
"Motel 6’s strong brand recognition, financial profile and network in the U.S., 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."
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Blackstone "invested significant capital" to "enhance the Motel 6 brand," according to the real estate firm. There are around 1,500 Motel 6 and Studio 6 franchise properties in Canada and the U.S.
"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 CEO 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."
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According to Blackstone, the all-cash transaction is expected to close in the fourth quarter of 2024.
G6 Hospitality did not immediately return FOX Business' request for comment.
