HBI Staff | Hyderabad 
Oravel Stays, the parent company of global travel technology firm OYO, has announced its acquisition of G6 Hospitality, the leading economy lodging franchisor that operates the iconic Motel 6 and Studio 6 brands. The all-cash deal is valued at $525 million and marks a significant expansion for OYO in the U.S. market. The transaction sees OYO purchasing G6 from Blackstone Real Estate.
OYO, which launched in the U.S. in 2019, currently operates over 320 hotels across 35 states and has been steadily growing its presence. In 2023 alone, the company added nearly 100 hotels to its U.S. portfolio and aims to add another 250 in 2024. Motel 6’s franchise network generates approximately $1.7 billion in gross room revenues annually, creating a strong foundation of recurring fees and cash flow that OYO will leverage using its global technology and marketing expertise to drive future growth for the brands.
“This acquisition is a significant milestone for OYO as it strengthens our international footprint,” said Gautam Swaroop, CEO of OYO International. “The Motel 6 brand’s strong U.S. presence, paired with OYO’s innovative approach, will help chart a sustainable growth path for the business, which will continue to operate as a separate entity.”
G6 Hospitality has undergone major transformations under Blackstone’s ownership, evolving into an asset-light franchise operation with around 1,500 hotels across the U.S. and Canada. Julie Arrowsmith, President and CEO of G6 Hospitality, expressed optimism about the acquisition, stating, “We are excited about this new chapter with OYO. Their unique approach to hospitality will allow us to enhance our offerings while maintaining the trusted Motel 6 brand that guests have relied on for over 60 years.”
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, highlighted the financial success of the partnership, noting that the investment more than tripled investor capital and generated over $1 billion in profit during Blackstone’s ownership period.
The deal is expected to close in the fourth quarter of 2024, subject to regulatory approvals and customary conditions. Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor, with Jones Lang LaSalle Securities, LLC and PJT Partners providing financial advice. Simpson Thacher & Bartlett LLP served as Blackstone’s legal counsel.
