New Delhi & Dallas – September 20, 2024 – Oravel Stays (OYO), a global travel technology company, has announced its acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate. The all-cash transaction is valued at $525 million and marks a significant step in OYO’s growth strategy in the United States and the broader travel industry landscape where Blackstone has been a major player.
This strategic acquisition underscores OYO’s commitment to expanding its footprint in the US market, where it has been steadily growing since 2019. Currently operating over 320 hotels across 35 states, OYO aims to further solidify its position and cater to the increasing demand for quality and affordable lodging options. In 2023 alone, OYO added nearly 100 hotels to its US portfolio, with plans to add approximately 250 more in 2024. The acquisition of G6 Hospitality, with its Motel 6 franchise network generating $1.7 billion in gross room revenues, provides OYO with a robust platform for accelerated growth and enhanced market penetration.
Gautam Swaroop, CEO of OYO International, highlighted the significance of this acquisition: “For a startup company like us, this acquisition represents a major leap forward in strengthening our international presence. Motel 6’s established brand recognition, strong financial performance, and extensive network across the US, combined with OYO’s dynamic approach, will be crucial in paving a sustainable and prosperous future for the company. G6 Hospitality will continue to operate as a separate entity, ensuring business continuity and leveraging the strengths of both organizations.“
Blackstone Real Estate’s ownership played a pivotal role in transforming G6 Hospitality into an asset-light lodging leader. Significant investments were made to enhance the Motel 6 brand and develop a franchise network encompassing approximately 1,500 hotels across the United States and Canada. This transformation has positioned G6 Hospitality as a valuable asset in the economy lodging sector, making it an attractive acquisition target for OYO as it seeks to expand its reach within the Travel Blackstone and broader hospitality market.
Julie Arrowsmith, President and CEO of G6 Hospitality, expressed enthusiasm for the future: “We appreciate the successful partnership we’ve had with Blackstone and the transformative journey that has prepared us for this exciting new chapter. OYO’s innovative approach to hospitality will allow us to enhance our guest offerings and deliver even greater value, all while preserving the iconic Motel 6 brand that travelers have trusted for over six decades.“
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, commented on the successful outcome of their investment: “This transaction is a fantastic result for our investors, representing the culmination of an ambitious business plan that more than tripled their capital and generated over $1 billion in profit during our ownership. We are confident in G6’s future prospects and anticipate continued success for its brands in the years ahead.“
The transaction is anticipated to be finalized in the fourth quarter of 2024, pending standard closing conditions. Blackstone was advised by Goldman Sachs & Co. LLC as lead advisor, with Jones Lang LaSalle Securities, LLC and PJT Partners serving as financial advisors. Simpson Thacher & Bartlett LLP provided legal counsel to Blackstone.
About OYO
OYO is a global platform focused on empowering entrepreneurs and small businesses in the hotel and home industry. It provides a comprehensive suite of technology products and services designed to increase revenue, streamline operations, and offer accessible, affordable, and reliable accommodation to travelers worldwide. OYO’s offerings include over 40 integrated products and solutions for patrons operating over 175,000 hotel and home storefronts across more than 35 countries, including India, Europe, and Southeast Asia. For more information, visit http://www.oyorooms.com/us/?utm_source=press_release&utm_medium=referral&utm_campaign=press_release
About G6 Hospitality LLC
G6 Hospitality LLC is a leading franchisor in the economy lodging segment, boasting nearly 1,500 locations under the well-known Motel 6 and Studio 6 Extended Stay brands in the United States and Canada. G6 Hospitality is dedicated to making hospitality accessible to everyone through responsible business practices and providing franchisees with exceptional opportunities for building a lasting legacy. Both Motel 6 and Studio 6 were recognized in the 2024 Entrepreneur Franchise 500® report, with Motel 6 achieving a top 50 ranking among all franchises. The Carrollton, Texas-based company was also honored as a 2024 Leader in Diversity by the Dallas Business Journal. For more information, please visit http://www.g6hospitality.com/
About Blackstone Real Estate
Blackstone is a global leader in real estate investment. Founded in 1991, Blackstone’s real estate business manages US $336 billion of investor capital. As the world’s largest owner of commercial real estate, Blackstone owns and operates assets across all major geographies and sectors, including logistics, data centers, residential, office, and hospitality. Their opportunistic funds focus on acquiring undermanaged, well-located assets globally. Blackstone’s Core+ business invests in substantially stabilized real estate assets worldwide through institutional strategies and strategies tailored for income-focused individual investors, including Blackstone Real Estate Income Trust, Inc. (BREIT). Blackstone Real Estate also operates a leading global real estate debt business, offering comprehensive financing solutions across the capital structure and risk spectrum, including management of Blackstone Mortgage Trust (NYSE: BXMT).
CONTACTS:
OYO
Anupriya Malik
[email protected]
G6 Hospitality
Maggie Giddens
[email protected]
Blackstone
Jeffrey Kauth
[email protected]
