SUMMARY
- OYO acquires G6 Hospitality for $525M, targeting Motel 6 and Studio 6 brands.
- Blackstone purchased G6 Hospitality for $1.9 billion in 2012; OYO plans to expand properties.
- OYO’s recent growth includes a $27M acquisition and a $175M fundraising round.
Indian multinational hospitality firm, OYO, has agreed to purchase G6 Hospitality, which operates Motel 6 and Studio 6, for $525 million in an all-cash deal. The acquisition would see OYO take over the US-based company from Blackstone Real Estate. The agreement is anticipated to be finalized by the end of 2024.
In 2012, Blackstone paid $1.9 billion to acquire the Motel 6 and Studio 6 brands from Accor. Presently, Studio 6 has more than 200 properties, while Motel 6 manages more than 1,450 hotels in the US and Canada.
The franchise network of Motel 6 brings about $1.7 billion in gross room revenues annually. OYO intends to add 250 more properties in the current fiscal year after adding approximately 100 in the US in 2023. With this transaction, OYO has made two significant purchases recently. The Gurugram-based business paid more than $27 million to buy Checkmyguest, a Paris-based startup, just last month. The transaction occurred soon after OYO’s $175 million fundraising round, to which founder Ritesh Agarwal committed $100 million. Furthermore, OYO is anticipated to shortly resubmit its draft IPO documents, having previously decided to withdraw the draft due to unfavorable circumstances.
The company generated a profit in the most recent fiscal year, reporting an after-tax profit of ₹239 crore. But from ₹5,464 crore in FY23 to ₹5,389 crore in FY24, its operating revenue fell 1.4%.
