Popular budget motel chain sold to India-based startup for $525 million

A global travel technology company based in India announced the purchase of one of America’s most popular motel chains.

On September 20, OYO announced the acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, from Blackstone Real Estate for $525 million in an all-cash transaction.

The transaction is expected to close in the 4th quarter of 2024.

Prior to the acquisition, OYO owned over 320 hotels across 35 states after entering the U.S. market in 2019.

Motel 6 is a popular option for truckers because many of the locations have truck parking. The company says that of the almost 1,500 Motel 6 locations, nearly 800 have truck parking available.

“Motel 6’s franchise network produces gross room revenues of $1.7 billion, which generates a strong fee base and cash flow for G6. OYO will 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 and drive continued financial growth,” Blackstone said in a news release.

“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.

“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter. OYO’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades,” said Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality.

“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. 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,” said Rob Harper, Head of Blackstone Real Estate Asset Management America.