OYO, the Indian hospitality giant, has announced the acquisition of G6 Hospitality, the parent company behind Motel 6 and Studio 6, for $525 million in an all-cash deal. The acquisition is expected to close by the end of 2024, with OYO taking over G6 from its current owner, Blackstone Real Estate. This move is set to significantly expand OYO’s footprint in the U.S. and Canadian markets.
Motel 6, a well-known budget hotel brand, operates over 1,450 properties across North America, while Studio 6 has more than 200 extended-stay hotels. The franchise network generates a staggering $1.7 billion in annual gross room revenues. For OYO, which has already added nearly 100 properties in the U.S. in 2023 and plans to grow by another 250 by year’s end, this acquisition represents a critical step in its global expansion strategy.
Blackstone acquired Motel 6 and Studio 6 from French hotel chain Accor for $1.9 billion in 2012. Now, with this latest deal, OYO aims to revitalize the brands and bolster its presence in the North American market.
This acquisition follows closely on OYO’s purchase of Paris-based short-term rental management platform Checkmyguest for over $27 million. It also comes after the company secured $175 million in a funding round, with $100 million contributed by its founder, Ritesh Agarwal. OYO is expected to refile its draft IPO papers soon after previously delaying the offering due to unfavourable market conditions.
Despite facing a slight revenue dip in FY24, with revenue from operations decreasing 1.4% to Rs 5,389 crore, OYO turned a profit of Rs 239 crore for the year, a significant milestone for the firm as it continues its aggressive expansion in key markets.
