Oravel Stays, the parent company of travel technology company Oyo, announced it has agreed to acquire G6 Hospitality — the hotel franchisor that operates the Motel 6 and Studio 6 brands — from Blackstone Real Estate for $525 million in an all-cash transaction.
Oyo is a global platform that provides hotel owners with technology products and services that aim to increase revenue and ease operations. Oyo also operates Oyo Rooms, a hospitality chain of leased and franchised hotels and homes.
An India-based company, Oyo has expanded its footprint in the US since its launch in the region in 2019 and currently operates over 320 hotels across 35 states. In 2023, Oyo added nearly 100 hotels to its US portfolio and aims to add 250 hotels in 2024. G6 has nearly 1,500 locations in the US and Canada.
Gautam Swaroop, CEO of Oyo International, said the acquisition is “a significant milestone for a startup company to strengthen its international presence.” He said, “Motel 6’s strong brand recognition, financial profile and network in the US, combined with Oyo’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity.”
Julie Arrowsmith, CEO at G6 Hospitality, said, “We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter.” Oyo’s innovative approach to hospitality, she said, “will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades.”
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
