The India-based travel technology company OYO has acquired G6 Hospitality, the parent company of the lodging brands Motel 6 and Studio 6 brands, from the New York City-based investment firm Blackstone (NYSE:BK) for $525 million in an all-cash transaction.
Motel 6 began operations in 1962 as the nation’s first no-frills economy motel chain and currently operates roughly 1,500 hotels across the US and Canada; its franchise network produces gross room revenues of $1.7 billion. Blackstone acquired the brand in 2012 for $1.9 billion from the French company Accor SA and established G6 Hospitality as its holding company.
OYO has been part of the US lodging market since 2019 and operates over 320 hotels across 35 states.
“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.
Julie Arrowsmith, president and CEO at G6 Hospitality, added, “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.”
Photo by Coolcaesar / Wikimedia Commons
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