Motel 6 sold to India-based OYO Hotels for $525 million: ‘A new chapter’
Motel 6’s parent company has been acquired by India-based OYO Hotels for $525M in net cash, according to a press release. (Source: File)
India-based hotel company OYO is acquiring Motel 6’s parent company, G6 Hospitality, for $525 million in net cash, according to a Blackstone Real Estate release.
Oravel Stays, owned by global travel technology company OYO, operates more than 320 hotels in 35 states across America.
OYO first entered the US market with an aggressive launch in 2019. OYO has acquired about 100 hotels by 2023 and wants to add about 250 hotels in that sector by 2024, according to a Blackstone Real Estate release.
10K UNUNITED HOTEL WORKERS ON STRIKES IN MANY CITIES, DEMANDING HIGHER PAY, LABOR REDUCTION.
G6 Hospitality is the parent company of the Motel 6 and Studio 6 brands, with an estimated $1.7 billion in net revenue across its entire network.
Motel 6 sign in Coeur d’Alene, Idaho. (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images/Getty Images)
“This acquisition is a milestone for a start-up company like us to strengthen our international presence,” said Gautam Swaroop, OYO International CEO, in a statement.
“Motel 6’s strong brand recognition, financial profile and network in the US, combined with OYO’s entrepreneurial spirit, will help shape the future direction of the company, which will continue to operate as a unique entity.”
MARRIOTT LOOKS FOR FRANCHISEE TO TURN NEW YORK HOTEL INTO PAYING GUESTS
Blackstone has made a “significant investment” to “enhance the Motel 6 brand,” according to the real estate company. There are approximately 1,500 Motel 6 and Studio 6 locations in Canada and the US
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| OYOCF | OYO | 16.553161 | – |
– |
| BX | Company BLACKSTONE INC. | 158.14 | -1.55 |
-0.97% |
“We are grateful for our successful partnership with Blackstone and the transition that has positioned us well for this new chapter,” said Julie Arrowsmith, president and CEO of G6 Hospitality.
Oyo hotel brands operated by Oyo Hotels Japan GK in Tokyo. (Toru Hanai/Bloomberg via Getty Images/Getty Images)
“OYO’s new approach to hospitality will allow us to enhance our offerings and greater value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for more than six decades.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
According to Blackstone, the all-cash transaction is expected to close in the fourth quarter of 2024.
G6 Hospitality did not immediately return FOX Business’ request for comment.
Source link
