The emblem of OYO. Picture used for consultant objective solely.
| Picture Credit score: Thulasi Kakkat
IPO-bound journey tech platform OYO on Saturday (September 21, 2024) introduced it has agreed to amass iconic American price range resort chain Motel 6 and Studio 6 manufacturers from Blackstone Actual Property for $525 million in an all-cash transaction, because the Indian unicorn eyes growth within the U.S.
Oravel Stays, the father or mother firm of OYO said that it has agreed to amass G6 Hospitality, the main financial system lodging franchisor and father or mother firm of Motel 6 and the chain’s offshoot resort model, Studio 6.
The transaction is predicted to shut within the fourth quarter of 2024, topic to customary closing situations.
Motel 6’s franchise community produces gross room revenues of $1.7 billion, which generates a robust price base and money circulate for G6.
OYO will leverage its complete know-how suite in addition to its international distribution community and advertising experience to additional strengthen the Motel 6 and Studio 6 manufacturers and drive continued monetary development, it said.
The journey tech platform has steadily expanded its footprint within the U.S. since its launch within the area in 2019 and operates over 320 inns throughout 35 states.
In 2023, OYO added practically 100 inns to its U.S. portfolio and goals so as to add about 250 inns in 2024.
“This acquisition is a major milestone for a startup firm like us to strengthen our worldwide presence. Motel 6’s robust model recognition, monetary profile and community within the U.S., mixed with OYO’s entrepreneurial spirit will likely be instrumental in charting a sustainable path ahead for the corporate which is able to proceed to function as a separate entity,” mentioned Gautam Swaroop, CEO OYO Worldwide.
Underneath its possession, Blackstone invested important capital to create worth and improve the Motel 6 model, together with executing a method to remodel the enterprise into a number one asset gentle lodging firm with a franchise community of near 1,500 inns throughout the U.S. and Canada.
Julie Arrowsmith, Chief Government Officer at G6 Hospitality mentioned, “OYO’s modern method to hospitality will permit us to boost our choices and nice worth to our visitors whereas sustaining the long-lasting Motel 6 model that travellers have trusted for over six many years.”
Rob Harper, Head of Blackstone Actual Property Asset Administration Americas, mentioned, this transaction is a terrific final result for buyers and is the fruits of an formidable marketing strategy that greater than tripled buyers’ capital and generated over $1 billion in revenue over the maintain interval.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Companions acted as monetary advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s authorized advisor.
Printed – September 21, 2024 12:25 pm IST
