Motel 6 and Studio 6 operator G6 Hospitality has agreed to be acquired by OYO for $525 million in an all-cash deal.
According to a press release from OYO, the acquisition will see OYO take over the US-based company from Blackstone Real Estate. The agreement is anticipated to close by the end of 2024.
In 2012, Blackstone paid $1.9 billion to acquire the Motel 6 and Studio 6 brands from Accor, a French hotel company. Presently, Studio 6 has more than 200 properties, while Motel 6 manages more than 1,450 hotels in the US and Canada.
The annual gross room revenue generated by the Motel 6 franchise network is $1.7 billion. In 2023, OYO opened about 100 new properties in the US, and for the current year, it intends to open 250 more.
This purchase represents OYO’s second significant acquisition in recent memory. The Paris-based Checkmyguest was purchased by the Gurugram-based company for more than $27 million just last month.
The $175 million funding round for OYO, in which founder Ritesh Agarwal contributed $100 million, precedes the acquisition. It is also anticipated that OYO will soon resubmit its draft IPO papers, having previously decided to withdraw the draft because of unfavorable circumstances.
The company turned a profit in the most recent fiscal year, reporting an after-tax profit of Rs 239 crore. But from Rs 5,464 crore in FY23 to Rs 5,389 crore in FY24, its operating revenue fell 1.4%.
