New York, September 22, 2024 (Yes Punjab News)
India-based hotel operator OYO is set to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6, in a $525 million all-cash transaction.
This acquisition is seen as a strategic move for OYO to expand its presence in the American market, according to a statement from Blackstone Real Estate, the current owner of G6 Hospitality.
OYO’s Expansion in the US
OYO, owned by Oravel Stays, has been making significant strides in the US since its aggressive entry into the market in 2019. The company currently operates over 320 hotels across 35 states and acquired nearly 100 hotels in 2023. It aims to add around 250 more hotels to its portfolio in 2024, solidifying its foothold in the US hospitality industry.
G6 Hospitality and Motel 6
G6 Hospitality operates the Motel 6 and Studio 6 brands, which together generate approximately $1.7 billion in gross room revenues across its franchise network. With about 1,500 properties in the US and Canada, Motel 6 is one of the most recognizable budget hotel chains, having served travelers for over six decades.
A Strategic Milestone for OYO
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” said Gautam Swaroop, CEO of OYO International. He added that Motel 6’s strong brand recognition and financial profile will complement OYO’s entrepreneurial spirit as they move forward.
OYO plans to operate G6 Hospitality as a separate entity, ensuring that the Motel 6 and Studio 6 brands retain their identity and continue offering value to travelers.
Blackstone’s Role and the Future of Motel 6
Blackstone, which has invested significantly in enhancing the Motel 6 brand, expressed satisfaction with the transformation under its ownership. Julie Arrowsmith, president and CEO of G6 Hospitality, expressed optimism about the future with OYO, praising its innovative approach to hospitality.
“The iconic Motel 6 brand will continue to offer great value to guests, thanks to OYO’s leadership and vision,” Arrowsmith stated.
Transaction Details
The all-cash transaction is expected to close in the fourth quarter of 2024, marking a new chapter for both OYO and G6 Hospitality. The acquisition is anticipated to further enhance OYO’s portfolio and global presence in the travel and hospitality industry.
As of now, G6 Hospitality has not responded to requests for comment on the acquisition.
FAQs About OYO’s Acquisition of G6 Hospitality
1. What is the value of the deal between OYO and G6 Hospitality?
OYO is acquiring G6 Hospitality, the parent company of Motel 6 and Studio 6, for $525 million in an all-cash transaction.
2. What brands are included in OYO’s acquisition of G6 Hospitality?
The acquisition includes the Motel 6 and Studio 6 brands, both of which operate under G6 Hospitality.
3. Why is OYO acquiring G6 Hospitality?
OYO’s acquisition of G6 Hospitality is a strategic move to strengthen its presence in the US market, where it currently operates over 320 hotels. The acquisition will help OYO grow its portfolio and benefit from Motel 6’s strong brand recognition.
4. Will Motel 6 and Studio 6 continue to operate under their current brands?
Yes, according to OYO, Motel 6 and Studio 6 will continue to operate as separate entities, maintaining their iconic branding and value propositions for travelers.
5. When will the OYO and G6 Hospitality acquisition be completed?
The all-cash transaction is expected to close in the fourth quarter of 2024.
