In an all-cash transaction, Oravel Stays, the parent company of the global travel technology company OYO, has reached an agreement to acquire G6 Hospitality, an economy lodging franchisor and the parent company of the iconic Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million.
In the United States and Canada, G6 Hospitality operates nearly 1,500 economy lodging locations under the Motel 6 and Studio 6 extended stay brands.
OYO intends to enhance the Motel 6 and Studio 6 brands by leveraging its global distribution network, marketing expertise, and comprehensive technology suite. The objective is to enhance their market presence and achieve consistent financial growth.
It is anticipated that the agreement will be finalized in the fourth quarter of 2024.
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Gautam Swaroop, CEO of OYO International, stated that this acquisition is a significant milestone for the startup to enhance its international presence.
The statement stated that Motel 6’s franchise network generates gross room revenues of $1.7 billion, which provides G6 with a robust cash flow and a strong fee base.
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said: “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. We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.”
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