In a strategic move to bolster its footprint in the U.S. lodging market, OYO, the global travel technology powerhouse, has announced the acquisition of G6 Hospitality, the parent company of the well-known economy lodging brands Motel 6 and Studio 6. This all-cash transaction, valued at $525 million, signifies OYO’s commitment to expanding its reach and diversifying its portfolio within the competitive American hospitality landscape.
Since its entry into the U.S. market in 2019, OYO has witnessed remarkable growth, currently managing over 320 hotels across 35 states. This momentum continued in 2023, with the addition of nearly 100 new properties to its portfolio. Looking ahead, OYO plans to further solidify its presence by adding approximately 250 hotels in 2024, positioning itself as a major player in the economy lodging segment.
The acquisition of G6 Hospitality presents OYO with a unique opportunity to capitalize on Motel 6’s robust franchise network, generating approximately $1.7 billion in gross room revenue. This strong revenue stream not only enhances G6’s cash flow but also provides OYO with a solid foundation to implement its innovative technology solutions, global distribution channels, and marketing expertise to elevate the Motel 6 and Studio 6 brands.
Blackstone, the current owner of G6 Hospitality, has significantly invested in the brand to increase its market value, focusing on transforming it into an asset-light lodging company with a franchise network of around 1,500 hotels across the U.S. and Canada. This strategic shift has strengthened G6’s competitive position in the lodging industry, making it an attractive asset for OYO.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Goldman Sachs & Co. LLC served as the lead advisor for Blackstone, with Jones Lang LaSalle Securities, LLC and PJT Partners also providing financial advisory services. Legal counsel for Blackstone was provided by Simpson Thacher & Bartlett LLP.
