NEW DELHI and DALLAS—Oravel Stays, the father or mother firm of the worldwide journey know-how firm OYO, introduced that it has agreed to amass G6 Hospitality, the father or mother firm of the Motel 6 and Studio 6 manufacturers, from Blackstone Actual Property for $525 million, in an all-cash transaction.
OYO has expanded its footprint in the USA since its launch within the area in 2019 and at present operates over 320 lodges throughout 35 states. In 2023, OYO added practically 100 lodges to its U.S. portfolio and goals so as to add ~250 lodges in 2024. Motel 6’s franchise community produces gross room revenues of $1.7 billion, which generates a price base and money circulate for G6. OYO will leverage its know-how suite in addition to its world distribution community and advertising to strengthen the Motel 6 and Studio 6 manufacturers and drive continued monetary development.
“This acquisition is a major milestone for a startup firm like us to strengthen our worldwide presence. Motel 6’s sturdy model recognition, monetary profile, and community in the USA, mixed with OYO’s entrepreneurial spirit will probably be instrumental in charting a sustainable path ahead for the corporate which is able to proceed to function as a separate entity,” stated Gautam Swaroop, CEO OYO Worldwide.
Beneath its possession, Blackstone invested capital to create worth and improve the Motel 6 model, together with executing a technique to rework the enterprise into an asset-light lodging firm with a franchise community of ~1,500 lodges throughout the USA and Canada.
Julie Arrowsmith, president and CEO at G6 Hospitality, stated, “We’re grateful for our profitable partnership with Blackstone and the transformation that has positioned us properly for this new chapter. OYO’s revolutionary method to hospitality will enable us to boost our choices and nice worth to our visitors whereas sustaining the long-lasting Motel 6 model that vacationers have trusted for over six many years.”
Rob Harper, head of Blackstone Actual Property Asset Administration Americas, stated, “This transaction is a terrific final result for buyers and is the end result of an bold marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval. We imagine G6 is extraordinarily well-positioned for the long run and we sit up for seeing its manufacturers proceed their success within the years to return.”
The transaction is anticipated to shut within the fourth quarter of 2024, topic to customary closing circumstances.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Companions acted as monetary advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s authorized advisor.
