Oyo, known for its innovative approach to hotel operations, is making waves in the U.S. hospitality industry. The Indian-based hotel operator has been steadily increasing its presence in the country, with a recent major acquisition that has caught the attention of industry insiders.
The parent company of Oyo has announced its acquisition of the budget motel chain Motel 6, a staple in the American lodging market. Blackstone, a renowned investment firm based in New York, will be completing the all-cash transaction worth $525 million. As part of the deal, the Studio 6 motel brand, catering to extended stay guests, will also change hands. The acquisition is set to close by the end of the year, marking a significant move for both companies.
Oyo’s rapid expansion in the U.S. is a testament to its innovative business model and strategic growth plans. With 320 hotels already operating across 35 states, the company is on track to add another 250 properties by the end of this year. Gautam Swaroop, OYO’s international division chief, expressed excitement over the acquisition, emphasizing its importance in strengthening the brand’s global presence.
Blackstone’s initial purchase of Motel 6 and Studio 6 in 2012 has proven to be a fruitful investment, with the firm heavily investing in the brands’ transformation into successful franchises. With this latest transaction, Blackstone has achieved significant success for its investors, with impressive returns and profits exceeding $1 billion.
With this acquisition, Oravel Stays, the parent company of Oyo, is set to take over G6 Hospitality, further solidifying Oyo’s position as a key player in the U.S. hospitality market.
