 "OYO announces 5 million acquisition of Motel 6, enhancing its US presence and promising innovative hospitality solutions for travelers.")
OYO, an IPO-bound travel tech platform based in India, has agreed to buy the Motel 6 and Studio 6 hotel brands from Blackstone Real Estate for $525 million in an all-cash deal. This acquisition aims to enhance OYO’s presence in the US Market, where it currently operates over 320 hotels. The deal is expected to finalize in the fourth quarter of 2024, pending standard closing conditions. OYO plans to utilize its technology and Marketing expertise to boost the Motel 6 brand, which generates significant revenue through its franchise network. This strategic move represents a crucial step in OYO’s growth and international expansion journey.
OYO, the popular travel tech platform, has announced an ambitious acquisition of the well-known American budget hotel chains Motel 6 and Studio 6 from Blackstone Real Estate for $525 million in cash. This deal marks a significant step for OYO as it aims to expand its presence in the United States, where the company has been actively growing since launching in 2019.
The parent company of OYO, Oravel Stays, confirmed that this acquisition involves G6 Hospitality, which manages the Motel 6 brand and its subsidiary Studio 6. The transaction is set to close in the fourth quarter of 2024, pending standard closing procedures.
Motel 6 generates an impressive $1.7 billion in gross room revenues, creating a solid revenue stream for G6 Hospitality. OYO plans to utilize its advanced technology and Marketing expertise to enhance the Motel 6 and Studio 6 brands and drive financial growth.
OYO has been steadily increasing its footprint in the U.S., operating over 320 hotels across 35 states and planning to add around 250 more hotels in 2024. Gautam Swaroop, CEO of OYO International, emphasized that this acquisition is a major milestone for the company, strengthening its international presence and ensuring the continued success of the Motel 6 brand.
Blackstone has enhanced the Motel 6 brand during its ownership, turning it into a leading asset-light lodging company with a franchise network of nearly 1,500 hotels across the U.S. and Canada.
This acquisition not only benefits OYO but also promises significant value for customers, as stated by Julie Arrowsmith, CEO of G6 Hospitality, who believes that OYO’s innovative approach to hospitality will enhance guest offerings while preserving the Motel 6 legacy.
This impactful move is expected to reshape the hospitality landscape in the U.S. as OYO continues to leverage its robust technology and global reach.
Tags: OYO, Motel 6, Studio 6, acquisition, travel tech, U.S. expansion, hospitality industry.
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What is the news about OYO acquiring Motel 6?
OYO is buying Motel 6 for $525 million in cash. This deal will help OYO expand its presence in the motel Market. -
Why is OYO interested in Motel 6?
Motel 6 is a well-known brand with many locations. Acquiring it will allow OYO to grow its business and reach more customers in the budget travel segment. -
How will this deal affect Motel 6 customers?
Motel 6 customers can expect improvements in services and facilities as OYO aims to enhance the guest experience at their motels. -
When is the deal expected to be completed?
The deal is still in progress, and OYO hopes to finalize it soon. An official timeline will be announced once everything is confirmed. - Will employees of Motel 6 keep their jobs after the acquisition?
OYO plans to retain most of the current employees at Motel 6. They aim to keep the brand’s identity while integrating it into their operations.
