MUMBAI: Oyo is buying US-based G6 Hospitality, the financial system lodging franchisor and father or mother firm of the long-lasting 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 the moment operates over 320 motels throughout 35 states.Plans are afoot so as to add one other 250 motels to its US portfolio this 12 months. Oyo will construct on this acquisition by leveraging its expertise stack and world 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 movement for G6.
“This acquisition is a major 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 can be instrumental in charting a sustainable path ahead for the corporate which can 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 remodeled the enterprise into an asset mild lodging firm with a franchise community of about 1500 motels throughout the US and Canada.
“This transaction is a terrific consequence for buyers and is the end result of an formidable marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval. We imagine G6 is extraordinarily well-positioned for the long run and we look ahead to 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 anticipated 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 the moment operates over 320 motels throughout 35 states.Plans are afoot so as to add one other 250 motels to its US portfolio this 12 months. Oyo will construct on this acquisition by leveraging its expertise stack and world 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 movement for G6.
“This acquisition is a major 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 can be instrumental in charting a sustainable path ahead for the corporate which can 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 remodeled the enterprise into an asset mild lodging firm with a franchise community of about 1500 motels throughout the US and Canada.
“This transaction is a terrific consequence for buyers and is the end result of an formidable marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval. We imagine G6 is extraordinarily well-positioned for the long run and we look ahead to 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 anticipated to shut within the fourth quarter of 2024.
