Oravel Stays, the parent company of OYO, a global travel technology platform, has announced its agreement to acquire G6 Hospitality. G6 Hospitality operates the well-known economy lodging brands Motel 6 and Studio 6. The deal, valued at $525 million, will be an all-cash transaction with Blackstone Real Estate.
Since its entry into the U.S. market in 2019, OYO has expanded its operations to include more than 320 hotels across 35 states. In 2023 alone, OYO added nearly 100 hotels to its U.S. portfolio and plans to expand by another 250 in 2024. G6’s franchise network, which generates approximately $1.7 billion in gross room revenues annually, offers a robust source of revenue and cash flow. OYO aims to utilize its technology capabilities, global distribution, and marketing expertise to further enhance the Motel 6 and Studio 6 brands, continuing the financial growth of G6 Hospitality.
“This acquisition is a major step for us in expanding our international reach. The strong presence of Motel 6 in the U.S., combined with OYO’s innovative business approach, will help create a sustainable growth path for G6, which will remain an independent entity,” said Gautam Swaroop, CEO of OYO International.
During Blackstone’s ownership, the firm invested substantial capital in G6 Hospitality to enhance its value. The strategic transformation turned the business into a leading franchise-based lodging company, with nearly 1,500 hotels across the U.S. and Canada.
Julie Arrowsmith, President and CEO of G6 Hospitality, commented, “We appreciate our successful collaboration with Blackstone, which has allowed us to achieve key milestones. With OYO’s forward-thinking approach, we are well-positioned to continue delivering value to our guests while preserving the legacy of the Motel 6 brand.”
Rob Harper, Head of Asset Management Americas at Blackstone Real Estate, added, “This transaction is an excellent outcome for our investors. It concludes a business strategy that has more than tripled our capital investment and generated over $1 billion in profit. We believe G6 is well-positioned for future success under OYO’s leadership.”
The acquisition is expected to close in the fourth quarter of 2024, pending standard closing conditions.
Goldman Sachs & Co. LLC served as the lead advisor to Blackstone, while Jones Lang LaSalle Securities, LLC, and PJT Partners acted as financial advisors. Blackstone’s legal representation was provided by Simpson Thacher & Bartlett LLP.
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By Ravi Kumar
