Oyo is preparing to buy America’s budget hotel chain Motel 6. India’s famous hotel chain Oyo is now ready to make its presence felt in America as well. The Motel brand is now preparing to sell the company’s G6 Hospitality to Oyo. It is believed that this deal is going to be worth $525 million. With this investment, Oyo will also reach the global level.
According to a Blackstone press statement, Oravel Stays Limited, the parent company of Oyo, has agreed to acquire G6 Hospitality LLC, the parent company of the Motel 6 and Studio 6 brands, on September 20, 2024. The transaction is expected to be completed in the fourth quarter of 2024.
This comes at a time when the US hotel sector is grappling with declining occupancy and stagnant room rents, reports The Wall Street Journal. Citing an analysis by data firm CoStar, the report also said that economy segment hotel customers typically pay an average of $79 per night as of August this year, up 14% from five years ago but down from last year.
Learn more about Oyo
Founded by Ritesh Agarwal in 2012 and headquartered in Gurugram, OYO is a global hotel chain that offers fast and convenient booking of hotel rooms through its app. The OYO hotel portfolio includes leased as well as franchised hotels, homes and accommodations, currently offering over 174,000 hotels in over 35 countries. Currently, it has over 320 hotels in 35 states in the US, with around 100 more hotels to be added in 2023, and a target to add 250 more hotels in 2024.
#OYO‘s parent company Oravel Stays, announced that it has agreed to acquire G6 Hospitality, the leading economy lodging franchisor and parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million, in an all-cash transaction.
Source-… pic.twitter.com/JSehZPHeOR
— Roopendra kumar 🇮🇳 (@roopendra1984) September 21, 2024
