INSUBCONTINENT EXCLUSIVE:
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.3 min read Last Updated : Sep
21 2024 | 10:58 AM IST
IPO-bound travel tech platform OYO on Saturday announced it has agreed to acquire iconic American budget hotel
chain Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million in an all-cash transaction, as the Indian unicorn eyes
expansion in the US.
Oravel Stays, the parent company of OYO stated that it has agreed to acquire G6 Hospitality, the leading economy
lodging franchisor and parent company of Motel 6 and the chain's offshoot hotel brand, Studio 6.
The transaction is expected to close in
billion, which generates a strong fee base and cash flow for G6.
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, it stated.
The travel tech platform has steadily expanded its footprint in the US since its launch in the region in 2019 and
operates over 320 hotels across 35 states.
In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add about 250 hotels in
2024.
"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 US, 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.
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 close to 1,500 hotels
across the US and Canada.
Julie Arrowsmith, Chief Executive Officer at G6 Hospitality said, "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 travellers have trusted for
over six decades."Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said, this transaction is a terrific outcome for
investors and is the culmination of an ambitious business plan that more than tripled investors' capital and generated over USD 1 billion in
profit over the hold period.
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.(Only the headline and picture of this report may have been reworked by
the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Sep 21 2024 | 10:58 AMIST
