by Donald Wood
Last updated: 10:35 AM ET, Tue September 24, 2024
Economy budget brand Motel 6 announced that it would be sold
to Indian-based travel company OYO for $525 million.
According to Motel 6’s parent company, Blackstone, the all-cash
deal with Oyo will also include the Studio 6 brand, its chain of extended-stay
hotels. The transaction is expected to be completed by the end of 2024.
“This acquisition is a significant milestone for a startup
company like us to strengthen our international presence,” OYO International
Chief Executive Officer Gautam Swaroop 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 which will
continue to operate as a separate entity,” Swaroop continued.
The OYO brand launched in the United States in 2019 and has
grown to operate over 320 hotels across 35 states. Motel 6’s franchise network
produces gross room revenues of $1.7 billion, and OYO plans to 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.
“This transaction is a terrific outcome for investors and is
the culmination of an ambitious business plan that more than tripled our
investors’ capital and generated over $1 billion in profit over our hold period,”
Blackstone’s Rob Harper said.
“We believe G6 is extremely well-positioned for the future
and we look forward to seeing its brands continue their success in the years to
come,” Harper continued.
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