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The
New York-based investment firm Blackstone, which owns Motel 6’s
parent company G6 Hospitality, announced Friday that the deal
would be an all-cash transaction worth $525 million.
The transaction will also include the sale of the Studio 6 motel
brand, which caters to customers seeking extended stays. The
deal is expected to close by the end of the year.
Oyo, which launched in India just over a decade ago, has been
expanding its footprint in the U.S. over the past few years. The
company says it currently operates 320 hotels across 35 states
and is aiming to add 250 more this year.
“This acquisition is a significant milestone for a startup
company like us to strengthen our international presence,”
Gautam Swaroop, OYO’s international division chief, said in a
statement.
Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9
billion. Since then, the private equity giant says it has
heavily invested in the brand and pursued a strategy that
converted the chain into a franchise.
“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,” Rob Harper, the head of Blackstone Real
Estate Asset Management Americas, said in a statement.
Under the deal, Oravel Stays, which owns Oyo, will acquire G6
Hospitality.
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