Do you plan your trips around available hotels? No one wants to be stuck with a buggy bed, right? A major hotel chain is changing its name; you might want to recognize it before your next trip. The parent company of Oyo, an Indian hotel operator, is acquiring the budget motel chain Motel 6. Nonetheless, Motel 6 will keep its signature name.
Details Of Deal
The New York-based investment firm Blackstone, which owns Motel 6’s parent company G6 Hospitality, announced that the deal would be an all-cash transaction worth $525 million.
The transaction includes selling the Motel 6 and Studio 6 motel brands. It is expected to close by the end of the year.
What Is Oyo?
Oyo was launched in India over a decade ago and has expanded its footprint in the U.S. over the past few years. The company already operates 320 hotels across 35 states and aims to add 250 more this year.
History
Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has heavily invested in the brand and pursued a strategy that converted the chain into a franchise.
Blackstone admits that this is a terrific investment.
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. – Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality, said, “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.”
