Oravel Stays (the parent company of the global travel technology company OYO) announced that it has agreed to acquire G6 Hospitality—the leading economy lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands—from Blackstone Real Estate for $525 million in an all-cash deal.
OYO has been expanding its footprint in the United States since its launch in the region in 2019 and currently operates 320+ hotels across 35 states. Last year, OYO added nearly 100 hotels to its US portfolio and aims to add about 250 hotels this year.
Motel 6’s franchise network generates gross room revenues of $1.7 billion, generating a strong fee base and cash flow for G6. OYO will further utilize its comprehensive technology suite, global distribution network, and marketing expertise to strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
Under this ownership, Blackstone invested significant capital to create value and enhance the Motel 6 brand, including executing a strategy to transform the business into a leading asset light lodging company with a franchise network of about 1,500 hotels across the United States and Canada.
The deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Goldman Sachs acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett served as Blackstone’s legal advisor.
KEY QUOTES:
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence. 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.”
-Gautam Swaroop, CEO OYO International
“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter. 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.”
-Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period. We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.”
-Rob Harper, Head of Blackstone Real Estate Asset Management Americas
