Oyo, a fast-growing hotel operator based in India, is acquiring the budget motel chain Motel 6 along with the Studio 6 brand in a deal valued at $525 million. The acquisition, announced by New York-based investment firm Blackstone, is an all-cash transaction and is expected to be finalized by the end of the year.
Studio 6 Joins the Portfolio
Alongside Motel 6, the deal includes the sale of the Studio 6 brand, which caters to travelers seeking extended stays. This addition further strengthens Oyo’s portfolio, offering a wider range of options for customers in the U.S. market.
Strategic Expansion in the U.S.
Since its inception over a decade ago, Oyo has rapidly expanded its footprint beyond India. Currently, the company operates 320 hotels across 35 U.S. states and aims to add 250 more properties by the end of this year. Gautam Swaroop, the head of Oyo’s international division, described the acquisition as a pivotal moment for the company’s global growth strategy.
Blackstone’s Successful Investment Strategy
Blackstone, which acquired Motel 6 and Studio 6 in 2012 for $1.9 billion, has seen significant returns on its investment. Rob Harper, head of Blackstone Real Estate Asset Management Americas, stated that the deal is a “terrific outcome for investors,” tripling their initial capital and generating over $1 billion in profit during their ownership period.
A New Chapter for G6 Hospitality
The acquisition will see Oravel Stays, Oyo’s parent company, take control of G6 Hospitality, the current owner of the Motel 6 and Studio 6 brands. This strategic move aligns with Oyo’s ongoing efforts to establish a stronger presence in the U.S. hospitality market and leverage the brand’s established reputation among budget-conscious travelers.
This acquisition represents a significant milestone for Oyo as it continues to grow its international presence and solidify its position in the highly competitive U.S. hotel industry.
