MUMBAI: Oyo is buying US-based G6 Hospitality, the financial system lodging franchisor and father or mother firm of the enduring Motel 6 and Studio 6 manufacturers, from Blackstone Actual Property in a $525 million all-cash deal, the startup mentioned on Saturday.
Oyo has been increasing its footprint within the US since its launch within the area in 2019 and at present operates over 320 lodges throughout 35 states.Plans are afoot so as to add one other 250 lodges to its US portfolio this yr. Oyo will construct on this acquisition by leveraging its know-how stack and international distribution community to additional strengthen the Motel 6 and Studio 6 manufacturers. Motel 6’s franchise community produces gross room revenues of $1.7 billion, producing a wholesome payment base and money move for G6.
“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 within the US, mixed with Oyo’s entrepreneurial spirit might be instrumental in charting a sustainable path ahead for the corporate which is able to proceed to function as a separate entity,” Gautam Swaroop, CEO at Oyo Worldwide mentioned in an announcement.
Underneath its possession, Blackstone invested vital capital to construct the Motel 6 model and reworked the enterprise into an asset mild lodging firm with a franchise community of about 1500 lodges throughout the US and Canada.
“This transaction is a terrific consequence for traders and is the end result 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 longer term and we stay up for seeing its manufacturers proceed their success within the years to come back,” mentioned Rob Harper, head of Blackstone Actual Property Asset Administration Americas.
The transaction is predicted to shut within the fourth quarter of 2024.
Oyo has been increasing its footprint within the US since its launch within the area in 2019 and at present operates over 320 lodges throughout 35 states.Plans are afoot so as to add one other 250 lodges to its US portfolio this yr. Oyo will construct on this acquisition by leveraging its know-how stack and international distribution community to additional strengthen the Motel 6 and Studio 6 manufacturers. Motel 6’s franchise community produces gross room revenues of $1.7 billion, producing a wholesome payment base and money move for G6.
“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 within the US, mixed with Oyo’s entrepreneurial spirit might be instrumental in charting a sustainable path ahead for the corporate which is able to proceed to function as a separate entity,” Gautam Swaroop, CEO at Oyo Worldwide mentioned in an announcement.
Underneath its possession, Blackstone invested vital capital to construct the Motel 6 model and reworked the enterprise into an asset mild lodging firm with a franchise community of about 1500 lodges throughout the US and Canada.
“This transaction is a terrific consequence for traders and is the end result 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 longer term and we stay up for seeing its manufacturers proceed their success within the years to come back,” mentioned Rob Harper, head of Blackstone Actual Property Asset Administration Americas.
The transaction is predicted to shut within the fourth quarter of 2024.
