Motel 6 sold to Indian hotel operator Oyo for $525 million

Budget motel chain Motel 6 is being acquired by the parent company of Indian hotel operator Oyo.

The New York-based investment firm black stoneMotel, which owns Motel 6 parent company G6 Hospitality, announced Friday that the deal will be an all-cash deal valued at $525 million.

The deal will also include the sale of the Studio 6 motel brand, which caters to customers seeking longer-term accommodation. The transaction is expected to close by the end of this year.

Oyo was launched in India over a decade ago; expand its footprint in the United States over the past few years. The company said it currently operates 320 restaurants in 35 states and plans to add 250 more this year.

“For a start-up like us, this acquisition is an important milestone in strengthening our international presence,” Gautam Swaroop, head of OYO's international division, said in a statement.

Blackstone acquired Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant said it has invested heavily in the brand and pursued a strategy of converting chains into franchises.

Rob Harper, head of real estate asset management at Blackstone, said: “This transaction is a fantastic result for investors and the culmination of an ambitious business plan that has more than tripled our investors’ capital. and generated over $1 billion in profits during our ownership period.

Under the agreement, Oyo owner Oravel Stays will acquire G6 Hospitality.