In a significant business move, the budget motel chain Motel 6 is set to be acquired by Oravel Stays, the parent company of the Indian hotel operator Oyo. The deal was announced by the New York-based investment firm Blackstone, which currently owns G6 Hospitality, Motel 6’s parent company.
The acquisition is an all-cash transaction valued at $525 million and also includes the Studio 6 brand, which specializes in extended stay accommodations. Completion of the deal is anticipated by the end of the year.
Gautam Swaroop, the head of OYO’s international division, expressed optimism about the acquisition, stating that it marks a crucial step for the company as it expands its international presence. Oyo, which launched in India about ten years ago, has been increasing its operations in the United States, currently managing 320 hotels across 35 states with plans to add an additional 250 hotels this year.
The deal represents a successful exit for Blackstone, which had purchased Motel 6 and Studio 6 for $1.9 billion in 2012. Since then, the firm has made substantial investments and shifted the brand towards a franchise model. According to Rob Harper, the head of Blackstone Real Estate Asset Management Americas, this transaction is a great outcome for investors, resulting in a tripling of their capital and generating over $1 billion in profit during their ownership period.
Under the terms of the acquisition, Oravel Stays will take over G6 Hospitality, further broadening Oyo’s footprint in the competitive U.S. hospitality market.
