India’s Oyo Buys Motel 6 Chain For $525 Million

India-West News Desk
CARROLLTON, TX – Indian hospitality giant Oyo has announced its acquisition of economy hotel franchiser G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash transaction.
G6 Hospitality, the parent company of Motel 6 and extended-stay brand Studio 6, will strengthen Oyo’s presence in North America as part of the company’s ambitious global expansion strategy. The acquisition is expected to close by the end of this year, adding approximately 1,500 properties across the U.S. and Canada to Oyo’s North American portfolio, which currently includes 320 hotels in 35 states.
Founded in 2012 by Ritesh Agarwal, Oyo has steadily built its reputation in the global hospitality sector, with more than 43,000 properties worldwide. Oyo entered the U.S. market in 2019, weathering the challenges of the COVID-19 pandemic and securing private funding to maintain operations. The company aims to add 250 more hotels in North America by the end of 2024. Despite its rapid expansion, Oyo continues to call itself a startup, turning its first profit of $12 million in the fiscal year 2023-24. The company has raised $3.4 billion in funding across 17 rounds but has twice withdrawn its IPO filings with India’s Securities and Exchange Board, the latest being in May 2023.
The purchase of G6 is set to boost Oyo’s influence in the North American market while preserving the well-known Motel 6 and Studio 6 brands, which have been staples of budget travel for decades. Motel 6, with its iconic “We’ll leave the light on for you” slogan, was founded in Santa Barbara, California, in 1962, and gained a loyal following with its original $6-a-night rate. Today, Motel 6 and Studio 6 generate gross room revenues of $1.7 billion across their franchised locations.
Blackstone Real Estate, which acquired Motel 6 in 2012 for $1.9 billion, has significantly invested in the brand, transforming it into a leading asset-light lodging company with a strong franchise network.
have noted challenges ahead for the budget hotel sector in the U.S. As the economy faces headwinds and rising costs impact lower-income households, the demand for budget accommodations could decline. Amanda Hite, president of STR, a leading analytics firm, pointed out that while leisure travel may face challenges, business travel could present a growth opportunity, though it remains uncertain how much will trickle down to budget hotels.
Despite these uncertainties, Oyo’s acquisition of G6 Hospitality is poised to cement the company’s footprint in the competitive U.S. market and provide a foundation for future growth in the region.

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