NEW DELHI and DALLAS—Oravel Stays, the dad or mum firm of the worldwide journey expertise firm OYO, introduced that it has agreed to amass G6 Hospitality, the dad or mum firm of the Motel 6 and Studio 6 manufacturers, from Blackstone Actual Property for $525 million, in an all-cash transaction.
OYO has expanded its footprint in america since its launch within the area in 2019 and at present operates over 320 inns throughout 35 states. In 2023, OYO added almost 100 inns to its U.S. portfolio and goals so as to add ~250 inns in 2024. Motel 6’s franchise community produces gross room revenues of $1.7 billion, which generates a payment base and money stream for G6. OYO will leverage its expertise suite in addition to its international distribution community and advertising and marketing to strengthen the Motel 6 and Studio 6 manufacturers and drive continued monetary progress.
“This acquisition is a big milestone for a startup firm like us to strengthen our worldwide presence. Motel 6’s sturdy model recognition, monetary profile, and community in america, mixed with OYO’s entrepreneurial spirit can be instrumental in charting a sustainable path ahead for the corporate which is able to proceed to function as a separate entity,” mentioned Gautam Swaroop, CEO OYO Worldwide.
Beneath its possession, Blackstone invested capital to create worth and improve the Motel 6 model, together with executing a technique to rework the enterprise into an asset-light lodging firm with a franchise community of ~1,500 inns throughout america and Canada.
Julie Arrowsmith, president and CEO at G6 Hospitality, mentioned, “We’re grateful for our profitable partnership with Blackstone and the transformation that has positioned us properly for this new chapter. OYO’s modern strategy to hospitality will permit us to boost our choices and nice worth to our visitors whereas sustaining the long-lasting Motel 6 model that vacationers have trusted for over six many years.”
Rob Harper, head of Blackstone Actual Property Asset Administration Americas, mentioned, “This transaction is a terrific final result for traders and is the fruits of an formidable marketing strategy that greater than tripled our traders’ capital and generated over $1 billion in revenue over our maintain interval. We consider G6 is extraordinarily well-positioned for the long run and we stay up for seeing its manufacturers proceed their success within the years to come back.”
The transaction is predicted to shut within the fourth quarter of 2024, topic to customary closing situations.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Companions acted as monetary advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s authorized advisor.
