Oravel Stays, the parent company of India-based Oyo Hotels & Rooms, has agreed to acquire G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash transaction. G6 Hospitality, the parent company of the Motel 6 and Studio 6 economy hotel brands, expects the deal to close in the fourth quarter this year.
Oyo exploded on the hotel landscape in 2012 as a budget brand founded in India by Ritesh Agarwal. The company's economy hotel portfolio expanded across India quickly, then added hotels in Europe. Oyo came to the Americas in 2019, and now operates more than 320 hotels across 35 states in the U.S.
In 2019, Oyo partnered with Highgate to reflag Las Vegas' Hooters hotel and casino to the 657-key Oyo Hotel and Casino.
Oyo added nearly 100 U.S. properties to its portfolio in 2023 and plans to add about 250 in 2024.
The Motel 6 brand debuted in Santa Barbara, California, in 1962 with a name reflecting its early price of just $6 per night, designed for freeway travelers.
Blackstone acquired the Motel 6 and Studio 6 brands from French hotel company Accor in 2012 in a deal valued at $1.9 billion. Blackstone launched G6 Hospitality in 2012 to serve as the franchisor and management company for both brands.
Motel 6 has more than 1,450 hotels across the U.S. and Canada. The extended-stay Studio 6 brand has more than 200 hotels, and Studio 6 Suites — an all-suite, extended-stay brand variation of Studio 6 — launched in 2021.
"This acquisition is a significant milestone for a startup company like us to strengthen our international presence," Gautam Swaroop, CEO of Oyo International, said in the news release.
The Journal reports that Motel 6 will continue to operate as a separate entity.
“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter," Julie Arrowsmith, CEO at G6 Hospitality, said in a news release. "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.”
Blackstone and G6 could not be reached for comment by press time.