OYO has announced its agreement to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6, from Blackstone Real Estate for $525 million in an all-cash deal. This acquisition marks a significant milestone for OYO as it continues to expand its presence in the U.S. market, having launched operations there in 2019.
Currently, OYO operates over 320 hotels across 35 states and plans to add 250 more hotels in 2024. The Motel 6 franchise network generates gross room revenues of $1.7 billion, providing a robust fee base and cash flow for G6 Hospitality.
Gautam Swaroop, CEO of OYO International, highlighted the importance of this acquisition for strengthening their international presence, stating that Motel 6’s brand recognition and financial profile will be vital for OYO’s growth. Under Blackstone’s ownership, significant investments were made to enhance the Motel 6 brand and transform it into a leading asset-light lodging company with approximately 1,500 hotels in the U.S. and Canada.
The deal is expected to close in the fourth quarter of 2024, pending customary closing conditions. Blackstone was advised by Goldman Sachs & Co. LLC, while Jones Lang LaSalle Securities, LLC and PJT Partners provided additional financial advisory services. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone.
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