OYO’s parent company, Oravel Stays, is set to purchase G6 Hospitality, the owner of Motel 6 and Studio 6 brands, from Blackstone Inc. for $525 million in an all-cash deal.

This acquisition marks a significant step for OYO, which has been expanding its presence in the U.S. since launching there in 2019. Currently, OYO operates over 320 hotels across 35 states and added nearly 100 hotels to its portfolio in 2023. The company plans to add approximately 250 more hotels in 2024, leveraging its advanced technology and global marketing expertise to enhance the Motel 6 and Studio 6 brands.

Gautam Swaroop, CEO of OYO International, stated, “This acquisition is a significant milestone for us to strengthen our international presence. Motel 6’s strong brand recognition and financial profile, combined with OYO’s entrepreneurial spirit, will pave the way for sustainable growth while continuing to operate as a separate entity.”

Under Blackstone’s ownership, significant investments transformed Motel 6 into a leading asset-light lodging company, boasting a franchise network of around 1,500 hotels in the U.S. and Canada. Julie Arrowsmith, President and CEO of G6 Hospitality, expressed gratitude for Blackstone’s partnership and noted that OYO’s innovative approach to hospitality will enhance their offerings while preserving the iconic brand.

Rob Harper, Head of Blackstone Real Estate Asset Management Americas, remarked on the transaction as a success for investors, emphasizing the ambitious business plan that tripled capital and generated over $1 billion in profit during their holding period.

The transaction is anticipated to close in the fourth quarter of 2024, pending customary conditions. Goldman Sachs acted as Blackstone’s lead advisor, with Jones Lang LaSalle Securities and PJT Partners serving as financial advisors. Simpson Thacher & Bartlett LLP provided legal counsel to Blackstone.