Motel 6 sold to Indian hotel operator for $525 million – Washington Examiner
Motel 6, a budget motel chain, is set to be acquired by the parent company of Indian hotel operator Oyo for $525 million in an all-cash deal. This acquisition comes from Blackstone, a New York-based investment firm that currently owns G6 Hospitality, the parent company of Motel 6. In addition to Motel 6, the transaction will also encompass the Studio 6 brand, which targets customers looking for extended stays. The deal is anticipated to be finalized by the end of the year. Oyo has been operational in India for just over ten years, establishing itself in the hotel industry.
Motel 6 sold to Indian hotel operator for $525 million
The budget motel chain Motel 6 is being acquired by the parent company of Oyo, a hotel operator based in India.
The New York-based investment firm Blackstone, which owns Motel 6’s parent company G6 Hospitality, announced Friday that the deal would be an all-cash transaction worth $525 million.
The transaction will also include the sale of the Studio 6 motel brand, which caters to customers seeking extended stays. The deal is expected to close by the end of the year.
Oyo, which launched in India just over a decade ago, has been expanding its footprint in the U.S. over the past few years. The company says it currently operates 320 hotels across 35 states and is aiming to add 250 more this year.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO’s international division chief, said in a statement.
Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has heavily invested in the brand and pursued a strategy that converted the chain into a franchise.
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement.
Under the deal, Oravel Stays, which owns Oyo, will acquire G6 Hospitality.
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