New York, Sep 21
Boosting its international presence, Indian hospitality major Oyo’s parent company Oravel Stays is acquiring Motel 6 and Studio 6 chain with about 1,500 facilities across the US and Canada from the investment company Blackstone in a $525 million cash deal, the US firm said on Friday.
With the acquisition of G6 Hospitality, parent company of the two budget lodging chains, Oyo will become a major player in the US and Canadian hospitality industry, which is already dominated by Indian Americans.
Blackstone said that Motel 6’s franchise network produces gross room revenues of $1.7 billion.
Motel 6 is ubiquitous across the US and Canada known for its relatively cheap rooms that, however, conform to the corporate standards in maintenance and hospitality.
Stay 6 is an extended stay network for guests who want to rent rooms with more facilities for longer periods.
Oyo International CEO Gautam Swaroop said that the group will continue to operate as a separate entity.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence”, he said.
“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”, he said.
Blackstone said, “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”.