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 franchiser and parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $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 another 250 hotels in 2024. Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6. Oyo will leverage its technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth, said the company.
“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,” said Gautam Swaroop, CEO Oyo International.
