Real Estate
Oyo Acquires G6 Hospitality from Blackstone Real Estate in a $525 Million Deal
By GeoSquare News Desk · Published 2024-09-21
Oyo, a travel tech platform, is expanding its footprint in the US with the acquisition of G6 Hospitality, the economy lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands, from Blackstone Real Estate in a $525 million all-cash deal.
The startup, which launched in the US in 2019, currently operates over 320 hotels across 35 states and plans to add another 250 hotels to its US portfolio this year. Oyo will build on this acquisition by leveraging its technology stack and global distribution network to further strengthen the Motel 6 and Studio 6 brands.
Motel 6's franchise network produces gross room revenues of $1.7 billion, generating a healthy fee base and cash flow for G6. This acquisition is a significant milestone for a startup company like Oyo to strengthen its international presence. 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.
Under its ownership, Blackstone invested significant capital to build the Motel 6 brand and transformed the business into an asset-light lodging company with a franchise network of about 1,500 hotels across the US and Canada. 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. The transaction is expected to close in the fourth quarter of 2024.
Information
Blackstone Real Estate is a global real estate investment management company with over $200 billion in assets under management. The company invests in a wide range of real estate assets, including office buildings, retail properties, and hotels.
Oyo is a travel tech platform that operates a network of hotels, resorts, and vacation rentals across the globe. The company was founded in 2013 and has since expanded its operations to over 80 countries.