Today: June 24, 2025
September 22, 2024
2 mins read

Oyo Buys US Hospitality Chain

With the acquisition of G6 Hospitality, parent company of the two budget lodging chains, Oyo will become a major player in the US…reports Asian Lite News

Boosting its international presence, Indian hospitality major Oyo’s parent company Oravel Stays is acquiring Motel 6 and Studio 6 chain with about 1,500 facilities across the US and Canada from the investment company Blackstone in a $525 million cash deal, the US firm said on Friday. 

With the acquisition of G6 Hospitality, parent company of the two budget lodging chains, Oyo will become a major player in the US and Canadian hospitality industry, which is already dominated by Indian Americans.

Blackstone said that Motel 6’s franchise network produces gross room revenues of $1.7 billion.

Motel 6 is ubiquitous across the US and Canada known for its relatively cheap rooms that, however, conform to the corporate standards in maintenance and hospitality.

Stay 6 is an extended stay network for guests who want to rent rooms with more facilities for longer periods.

Oyo International CEO Gautam Swaroop said that the group will continue to operate as a separate entity.

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence”, he said.

“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”, he said.

Blackstone said, “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”.

Since its launch in the US in 2019, Oyo has steadily increased it portfolio and now operates 320 hotels– about 100 acquired last year – in 35 states, according to Blackstone.

There are 108,000 hotels and motels in the US, and, according to the Asian American Hotel Owners Association, Indian American entrepreneurs own about 60 per cent of them.

A large number of Motel 6 facilities are already run by Indians.

Blackstone bought Motel 6 from the French hotel company Accor in 2012 for $1.9 billion.

While selling the company for only $525 million may seem a bad deal, the travel industry publication Skift, said that in fact Blackstone made a sizeable profit by selling off many of the properties it acquired.

“Blackstone managed to more than triple its investors’ capital and generate over $1 billion in profit by investing $900 million in improving the properties and then selling off hundreds of them”’ the publication said.

When it was founded in 1962, Motel 6 got its name for the $6 price of hotel rooms at that time.

ALSO READ: ‘Investors Target Strong Deal Flow in India’

Previous Story

Dissanayake in lead to become Sri Lanka’s president

Next Story

‘India on Track for $10T Economy by 2032’

Latest from BUSINESS

Focus on Safety, Security & Health

CHANCELLOR RACHEL REEVES: “We’re investing in your security, health and economy so you and your family are better off” – The Spending Review 2025 sets the investment budgets until 2028-2029, to pay

Are Rachel Reeves’s Fiscal Rules Breaking Down?

Rachel Reeves is facing renewed pressure over Labour’s economic credibility following the release of fresh borrowing figures that exceeded expectations. By: Zahra Jawad Government borrowing hit £20.2 billion in April, almost £1
Go toTop

Don't Miss

Neo-Nazi group ‘actively seeking to grow in US’

The Base is emerging from shadows and ramping up its

Harris hits airwaves in razor-edge election

Polls have the Republican and Democrat candidates neck and neck,