 "OYO’s bold acquisition of G6 Hospitality for 5 million marks a pivotal expansion in its U.S. presence, enhancing Motel 6’s legacy.")
OYO, the global travel technology firm, is expanding its presence in the U.S. by acquiring G6 Hospitality, which includes Motel 6 and Studio 6, for $525 million in cash. Since entering the U.S. Market in 2019, OYO has grown to operate over 320 hotels and plans to add another 250 in the coming year. This acquisition marks a significant step for OYO as it aims to enhance the Motel 6 brand using its technology and Marketing expertise. The transaction is set to close in the fourth quarter of 2024, strengthening both OYO’s international reach and G6’s position in the economy lodging sector.
OYO Expands in the U.S. with $525 Million Acquisition of G6 Hospitality
Oravel Stays, the parent company of OYO, has made headlines by announcing its acquisition of G6 Hospitality, best known for its Motel 6 and Studio 6 brands. The deal, valued at $525 million, is a cash transaction and marks a significant step in OYO’s growth strategy in the United States.
Since launching in the U.S. in 2019, OYO has built a solid presence with more than 320 hotels across 35 states. The company added nearly 100 hotels to its portfolio just this year and plans to expand by another 250 in 2024. The investment in G6 Hospitality will enhance OYO’s offerings and leverage its technology and Marketing expertise to boost the Motel 6 and Studio 6 brands, both of which hold strong recognition in the budget lodging sector.
Gautam Swaroop, CEO of OYO International, emphasized that this acquisition is a major milestone for the company, enhancing its international footprint and solidifying its future growth. The deal is expected to close in the fourth quarter of 2024, pending customary closing conditions.
Blackstone Real Estate, the previous owner of G6 Hospitality, has made substantial investments to transform Motel 6 into an asset-light franchise-focused business. This transformation, along with OYO’s innovative approach to hospitality, is anticipated to create a winning combination for guests and partners alike.
Overall, this acquisition reflects OYO’s commitment to expanding its presence in the United States and strengthening its value proposition in the global hospitality Market.
Tags: OYO, G6 Hospitality, Motel 6, Studio 6, acquisition, hospitality industry, travel technology, budget lodging, U.S. expansion.
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What is OYO’s recent business move?
OYO has bought G6 Hospitality, a major US hotel chain, for 525 million dollars. -
Who owned G6 Hospitality before the sale?
G6 Hospitality was owned by Blackstone, a big investment firm. -
What is G6 Hospitality known for?
G6 Hospitality is known for its economy hotel brands, like Motel 6 and Studio 6. -
Why did OYO buy G6 Hospitality?
OYO aims to expand its presence in the US and strengthen its position in the hotel Market. - How will this affect OYO’s business?
This purchase could help OYO attract more customers and increase its revenue in the US.
