O
ravel Stays, parent company of OYO, has agreed to acquire G6 Hospitality for $525 million in an all-cash transaction. G6 is the leading economy lodging franchisor and parent company of Motel 6 and Studio 6 brands. This acquisition marks a significant milestone for OYO as it expands its footprint in the US, where it currently operates over 320 hotels across 35 states.

    Motel 6's franchise network generates $1.7 billion in gross room revenues, providing a strong fee base and cash flow for G6. OYO will leverage its technology suite and global distribution network to strengthen the Motel 6 and Studio 6 brands and drive financial growth.

    "This acquisition is a significant milestone for us," said Gautam Swaroop, CEO of OYO International. "Motel 6's strong brand recognition and financial profile combined with our entrepreneurial spirit will be instrumental in charting a sustainable path forward."

    Under Blackstone's ownership, G6 was transformed into a leading asset-light lodging company with a franchise network of over 1,500 hotels across the US and Canada. Julie Arrowsmith, President and CEO of G6 Hospitality, said, "We are grateful for our partnership with Blackstone and look forward to OYO's innovative approach enhancing our offerings."

    The transaction is expected to close in Q4 2024, subject to customary closing conditions. Goldman Sachs & Co. LLC acted as lead advisor to Blackstone, while Jones Lang LaSalle Securities and PJT Partners served as financial advisors.

    OYO is a global platform that empowers entrepreneurs with hotels and homes through full-stack technology products and services. The company operates over 175K hotel and home storefronts in more than 35 countries.

    G6 Hospitality LLC is a leading economy lodging franchisor with nearly 1,500 locations under the Motel 6 brand and Studio 6 Extended Stay brand in the US and Canada. Blackstone Real Estate is a global leader in real estate investing with $336 billion of investor capital under management.