OYO acquires G6 Hospitality from Blackstone Real Estate

This acquisition reflects OYO’s strategic intent to strengthen its position as a major player in the budget hospitality market, particularly in the U.S., which is known for being difficult to penetrate. OYO, present in the U.S. since 2019, currently operates more than 320 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its U.S. portfolio and aims to add around 250 more in 2024 under its brands.

The Motel 6 network generates gross revenues of $1.7 billion in franchise fees. After the acquisition, OYO plans to leverage its comprehensive technology solutions, global distribution network, and marketing expertise to further strengthen the Motel 6 and Studio 6 brands.

Since 2012, when Blackstone acquired G6 from the Accor group for $1.9 billion, the firm has invested over $900 million to streamline the network and transform the company, making necessary adjustments.

The deal is expected to close in Q4 2024, pending standard closing conditions.

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence. 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,” said Gautam Swaroop, CEO OYO International.

In 2024, OYO’s ownership is predominantly held by institutional investors, at 56.13%, with the SoftBank Vision Fund being the largest shareholder. Airbnb has also held a minority stake since 2019. Founder Ritesh Agarwal retains a 6.66% stake in the company.

OYO has postponed its Initial Public Offering (IPO) twice. The first attempt was in September 2021, but unstable market conditions reduced the company’s valuation to between $4 and $6 billion, compared to the $11 billion initially expected. The second delay, in May 2024, was attributed...