Blackstone, the renowned private equity firm, has agreed to sell Motel 6, the well-known American budget hotel chain, to Oyo for $525 million in cash. This significant acquisition, reported by The Wall Street Journal, represents Oyo’s strategic expansion into the U.S. hospitality market and marks the conclusion of Blackstone’s decade-long ownership of the Motel 6 brand.
Motel 6, famous for its affordable lodging options, aligns well with Oyo’s business model, which focuses on budget-friendly accommodations. This move not only enhances Oyo’s portfolio but also provides an opportunity for the company to scale its operations and increase its market presence in North America. The recent $525 million G6 deal highlights the company’s strategic push towards global expansion as it prepares for its upcoming IPO.
This significant investment is aimed at enhancing Oyo’s footprint in the hospitality sector, particularly in the United States, where the G6 Hospitality portfolio, which includes brands like Motel 6 and Studio 6, will provide a solid base for growth.
The $525 million purchase price came from an all-cash deal with US investment firm Blackstone Real Estate. This is one of Oyo’s largest acquisitions to date. Subject to customary circumstances, the transaction is anticipated to be completed in Q4 2024.
The acquisition is seen as a crucial step for Oyo, allowing the company to diversify its offerings and tap into the lucrative midscale and economy segments of the U.S. market. By bolstering its presence internationally, Oyo aims to attract a wider customer base and strengthen its competitive positioning ahead of the IPO.
Moving ahead, Oyo’s focus on global expansion is expected to enhance investor confidence, showcasing its ambition and long-term growth potential in the hospitality industry.
