Blackstone is set to sell G6 Hospitality to Oravel Stays, the parent company of hotel chain OYO.
G6 Hospitality, which is the parent company of the Motel 6 and Studio 6 brands, will be acquired by Oravel for $525 million in an all-cash deal.
The acquisition comes as part of OYO’s bid to expand in the US following its launch in country in 2019. The chain currently operates over 320 hotels across 35 states. In 2023, OYO added nearly 100 hotels to its US portfolio and aims to add around 250 hotels in 2024. Motel 6’s franchise network produces gross room revenues of $1.7 billion.
Blackstone acquired G6 Hospitality from Accor in 2012 as part of a $1.9 billion deal. Under its ownership, Blackstone made investments to enhance the Motel 6 brand, including executing a strategy to transform the business into an asset light lodging company with a franchise network of around 1500 hotels across the United States and Canada.
The transaction is expected to close in the fourth quarter of 2024.
Goldman Sachs & Co acted as Blackstone’s lead advisor. Jones Lang LaSalle Securities and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal advisor.
What they said
Gautam Swaroop, CEO OYO International said: “This acquisition is a significant milestone for a startup company like us to strengthen our international presence. Motel 6’s strong brand recognition, financial profile and network in the US, combined with OYO’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity.”
Rob Harper, head of Blackstone Real Estate Asset Management Americas added: “This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period. We believe G6 is extremely well-positioned for the future, and we look forward to seeing its brands continue their success in the years to come.”
Julie Arrowsmith, president & chief executive officer at G6 Hospitality added: “We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter. 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 travellers have trusted for over six decades.”