CORPORATE
OYO checks into US hotel company G6 Hospitality for $525 million
- IBJ Bureau
- Sep 22, 2024
Travel tech unicorn OYO is set to acquire G6 Hospitality, the parent company of iconic budget hotel brands Motel 6 and Studio 6, from Blackstone Real Estate for $525 million in an all-cash deal.
The acquisition is expected to bolster OYO’s international expansion plans. The IPO-bound company had entered the US market in 2019 and currently operates over 320 hotels across 35 States. It aims to add 250 hotels to its US portfolio in 2024.
Blackstone had acquired Motel 6, which was founded in 1962, from French lodging giant Accor in 2012 in a $1.9-billion deal. Today, 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 comprehensive 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, the company has said in a statement. The transaction is expected to close in the fourth quarter of 2024, subject to customary regulatory approvals.
“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 extensive US network, combined with OYO’s entrepreneurial spirit, will be instrumental in charting a sustainable path forward,” OYO International CEO Gautam Swaroop notes.
Last month, OYO had announced that it turned profitable in FY24, posting a net profit of Rs 229.5 crore in FY24 as against a net loss of Rs 1,286.5 crore in FY23. The travel tech company offers over 40 integrated products and solutions to patrons who operate over 1,75,000 hotel and home storefronts in more than 35 countries, including India, Europe and Southeast Asia.
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