O
ravel Stays, the parent company of OYO, has agreed to buy G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash deal. G6 is a leading economy lodging franchisor and owner of the Motel 6 and Studio 6 brands.

    OYO has rapidly expanded its US presence since entering the market in 2019, now operating over 320 hotels across 35 states. The company aims to add 250 more hotels in 2024, building on last year's addition of nearly 100 properties.

    "This acquisition marks a significant milestone for OYO," said Gautam Swaroop, CEO of OYO International. "Motel 6's strong brand recognition and financial profile will be key to our growth strategy." The Motel 6 franchise network generates $1.7 billion in gross room revenues annually, providing a solid foundation for future growth.

    Under Blackstone's ownership, the company invested heavily in transforming G6 into a leading asset-light lodging business with over 1,500 hotels across the US and Canada. Julie Arrowsmith, President and CEO of G6 Hospitality, expressed gratitude for the partnership and confidence in OYO's ability to enhance the Motel 6 brand.

    The transaction is expected to close in Q4 2024, subject to customary conditions. Blackstone's Head of Asset Management Americas, Rob Harper, praised the deal as a "terrific outcome" that more than tripled investor capital and generated over $1 billion in profit during their hold period.