Oyo Hotels & Rooms parent company Oravel Stays has closed on its $525 million, all-cash acquisition of G6 Hospitality and its Motel 6 and Studio 6 brands from Blackstone Real Estate.
The Indian company also replaced the majority of the G6 executive team, including CEO Julie Arrowsmith.
Overall, the addition of the G6 brands to Oyo's portfolio gives the company a stronger U.S. foothold, with more hotels in the works.
Oyo plans to add 150 hotels to the Motel 6 and Studio 6 brands in 2025 and strengthen "the brands' presence in key markets," according to a news release.
It's part of Oyo's plan "to accelerate the growth of G6 Hospitality's operations, focusing on technology integration, property upgrades and market expansion," the release states.
Oyo's path into the Americas
The purchase supplements Oyo's push into the Americas over the past decade. The company saw quick international growth after it was founded in India in 2012 by Ritesh Agarwal, growing first domestically before expanding into Europe then the U.S. and other parts of the Americas in 2019.
Agarwal told Hotel News Now in 2019 his plan was for the company to become "the most-loved hospitality brand in the world."
In the early stages of Oyo's growth, the Softbank-backed company operated more like a tech startup in its growth trajectory than a traditional hotel company, and it leveraged much of its domestic Indian growth on the strength of its tech and distribution platforms.
Oyo now touts over 40 "integrated products and solutions to patrons who operate over 185,000 hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia."
When the G6 acquisition was initially announced in September, Oyo had more than 320 hotels in the Americas with plans to add another 250 before the end of 2024.
Oyo officials believe their strength in technology will prove to be a catalyst for growing the G6 brands.
"Oyo plans technological advancements to enhance the guest experience and operational efficiency," the news release states. "These improvements include enhanced mobile and web booking experience and options of dynamic pricing capabilities that can optimize rates across room types throughout the year.
"In the distribution and revenue growth area, Oyo plans to develop a broader network of distribution partners beyond traditional online travel agencies, while simultaneously strengthening direct booking channels and corporate booking demand."
G6 Hospitality's timeline and executive turnover
The Blackstone Group has owned Motel 6 and Studio 6 since 2012 when it purchased G6 from Accor for $1.9 billion. Paris-based Accor bought the company in 1990 with similar hopes of solidifying its positioning in the U.S.
Motel 6 was initially founded in California in 1962 and expanded to include the extended-stay Studio 6 brand in 1999. The company launched the all-suite Studio 6 Suites in 2021.
At the time Oyo's G6 acquisition was announced in September, Motel 6 had more than 1,450 hotels and Studio 6 had more than 200.
As part of the deal, Oyo is restructuring G6's executive team and processes.
Oyo confirmed that many G6 leaders are leaving the company immediately, including:
- Julie Arrowsmith, former president and CEO.
- Adam Cannon, former chief brand officer.
- Farah Bhayani, former general counsel and chief compliance officer.
- Perry Ping, former chief financial officer.
- Mary Fregia, former chief human resource officer.
- Brent Haines, former chief information officer.
Tina Burnett will remain in the role of chief development officer.
Incoming executives include:
- CEO Sonal Sinha.
- Heads of brand performance Nishant Boorla and Anuj Ladha.
- Central operations head Manas Mehrota.
- Head of revenue, e-commerce and sales Subhankar Choudhary.
"We will continue to invest in skills that are unique and critical to the G6 business such as supply, account management, corporate sales, brand standards, offline marketing, safety and security," Oyo International CEO Gautam Swaroop said in a statement. "Over the years, Oyo has been able to successfully leverage already developed capabilities in India on technology, revenue management, e-commerce, procurement, legal, finance, and HR and will enable this for the G6 business, too."
Goldman Sachs & Co., Jones Lang LaSalle Securities, PJT Partners and Simpson Thacher & Bartlett all advised Blackstone on the deal, while Oyo worked with Deutsche Bank and Mizuho Securities.