Oravel Stays, the parent company of the global travel technology company OYO, said it has agreed to acquire G6 Hospitality, parent company of the iconic 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 U.S. portfolio. Officials said 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 officials said. “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. Under its 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 across the United States and Canada. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal advisor. The Motel 6 website lists 13 South Carolina hotels in Columbia, Greenville, Simpsonville, West Columbia, Florence, Myrtle Beach, Spartanburg, Fort Mill, Richburg, Summerville, Georgetown, Rock Hill and Walterboro. Motel 6 was founded in 1962 in Santa Barbara, California. The original price of a night's stay at Motel 6 was just $6.00. |