OYO to acquire G6 from Blackstone for $525M

Oravel Stays, the parent company of the global travel technology company OYO, has agreed to acquire G6 Hospitality, parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million, in an all-cash transaction.
“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 U.S., 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.
OYO has steadily expanded its footprint in the U.S. since its launch in the region in 2019 and currently operates more than 320 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its U.S. portfolio and aims to add approximately 250 hotels in 2024. Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6.
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 approximately 1,500 hotels across the U.S. and Canada, according to the company.
“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter,” said Julie Arrowsmith, president/CEO, G6 Hospitality. “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 travelers have trusted for over six decades.”
Rob Harper, head, Blackstone Real Estate Asset Management Americas, added, “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, subject to customary closing conditions.
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.
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