OYO Acquires US Hotel Chain G6 Hospitality from Blackstone for $525 Million
OYO to acquire G6 Hospitality, parent company of Motel 6 and Studio 6 brands, in an all-cash deal worth $525 million.
OyoG6 HospitalityBlackstone Real EstateMotel 6Studio 6Real Estate NewsSep 21, 2024
OYO has expanded its footprint in the United States 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.
“This acquisition is a significant milestone for a startup company like us to strengthen our 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,” said Gautam Swaroop, CEO OYO International.
Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6. OYO will leverage its comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth.
Under its ownership, Blackstone invested significant capital to create value and enhance the Motel 6 brand, including executing a strategy to transform the business into a leading asset light lodging company with a franchise network of 1,500 hotels across the United States and Canada.
Julie Arrowsmith, President and 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 will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travellers have trusted for over six decades.”
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
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.”
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal advisor.
About Blackstone Real Estate Blackstone Real Estate is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has approximately $280 billion in investor capital under management.
About OYO OYO is a global travel technology company that operates a chain of hotels, homes and living spaces. Founded in 2013, OYO has grown to become one of the largest hospitality companies in the world, with a presence in over 80 countries.
Frequently Asked Questions
What is the value of the acquisition deal between OYO and G6 Hospitality?
The acquisition deal is worth $525 million in an all-cash transaction.
How many hotels does OYO currently operate in the United States?
OYO currently operates over 320 hotels across 35 states in the United States.
What is the expected closing date of the transaction?
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Who acted as Blackstone’s lead advisor in the transaction?
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor.
What is the name of the parent company of Motel 6 and Studio 6 brands?
G6 Hospitality is the parent company of the iconic Motel 6 and Studio 6 brands.
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