OYO Buys American Motel 6’s Arm G6 Hospitality for $525 Mn

OYO has agreed to buy G6 Hospitality, which operates Motel 6 and Studio 6, for $525 million (Around 4360 Cr) in an all-cash deal.

The acquisition will see OYO take over the US-based corporation from Blackstone Real Estate, with the transaction set to finalize in the fourth quarter of 2024, according to a press release.

Related: OYO Reportedly Considering SoftBank’s Sumer Juneja for Board Position

With this acquisition, OYO hopes to leverage its comprehensive technology platform and global distribution network to accelerate growth for the Motel 6 and Studio 6 brands. In 2023 alone, OYO added roughly 100 hotels to its US portfolio, with plans to add approximately 250 additional hotels in 2024.

Gautam Swaroop, CEO of OYO International, emphasized the significance of the transaction, saying, “This acquisition is a significant milestone for a startup company like us to strengthen our international presence. Motel 6’s strong brand awareness, financial profile, and broad US network, along with OYO’s entrepreneurial drive, will help to pave the way for long-term success.”

Julie Arrowsmith, President and CEO of G6 Hospitality, stated, “We are grateful for our successful partnership with Blackstone and the transformation that has prepared us well for this new chapter. OYO’s unique approach to hospitality will enable us to improve our offerings and provide exceptional value to our customers while preserving the renowned Motel 6 brand that travelers have relied on for over six decades.”

Before this funding round, M2P’s biggest external shareholder was Beenext, owning 10.23% of the company, followed by Tiger Global with 9.22%, and Insight Partners with 6.44%. The co-founders Muthukumar Ayyakannu, Prabhu Rangarajan, and Madhusudanan R together possess 34.03% of the company. M2P Fintech was reportedly in discussions for an 80 million round,with ananticipated 30 million coming from secondary sales.