OYO father or mother firm Oravel Stays is buying funds lodging specialist G6 Hospitality for $525 million from Blackstone Actual Property.
G6 is the franchisor and father or mother firm of Motel 6 and Studio 6 manufacturers with a community of about 1,500 properties throughout america and Canada.
In 2019, India-based OYO launched within the U.S. the place it at the moment has greater than 320 inns and plans so as to add an extra 250 this yr.
Gautam Swaroop, CEO of OYO Worldwide described the acquisition as a “important milestone for a startup firm like us to strengthen our worldwide presence.”
“Motel 6’s sturdy model recognition, monetary profile and community within the US, mixed with OYO’s entrepreneurial spirit shall be instrumental in charting a sustainable path ahead for the corporate which can proceed to function as a separate entity,” he added.
Motel 6 generates gross room income of $1.7 billion in response to an announcement from Blackstone. OYO plans to leverage its know-how and distribution community to spice up the Motel 6 and Studio 6 manufacturers.
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“OYO’s revolutionary method to hospitality will permit us to boost our choices and nice worth to our visitors whereas sustaining the enduring Motel 6 model that vacationers have trusted for over six many years,” mentioned Julie Arrowsmith, president and CEO of G6 Hospitality.
Blackstone initially acquired the Motel 6 and Studio 6 manufacturers from French resort big Accor in 2012 for $1.9 billion.
“This transaction is a terrific consequence for traders and is the end result of an formidable marketing strategy that greater than tripled our traders’ capital and generated over $1 billion in revenue over our maintain interval,” mentioned Rob Harper, head of Blackstone Actual Property Asset Administration Americas.
“We imagine G6 is extraordinarily well-positioned for the longer term and we stay up for seeing its manufacturers proceed their success within the years to return.”
Earlier this yr OYO introduced funding of $174 million in a Sequence G spherical.
The G6 Hospitality transaction is predicted to shut within the fourth quarter of 2024.
