OYO has reached an agreement to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6, for $525 million in an all-cash deal. The transaction will involve OYO taking control of the U.S.-based company from Blackstone Real Estate, with the deal expected to be finalized by the end of 2024, according to a press release from OYO. Blackstone had previously purchased the Motel 6 and Studio 6 brands from French hotel group Accor in 2012 for $1.9 billion.
At present, Motel 6 operates over 1,450 hotels across the U.S. and Canada, while Studio 6 manages more than 200 properties. The Motel 6 franchise network generates $1.7 billion in annual gross room revenue. In 2023, OYO added nearly 100 properties in the U.S. and plans to add 250 more throughout the year.This acquisition is OYO's second major purchase in recent months. The company previously bought the Paris-based Checkmyguest for over $27 million. The acquisition follows a recent $175 million funding round, with OYO’s founder Ritesh Agarwal contributing $100 million.
OYO, which recently became profitable with a Rs 239 crore post-tax profit in the last fiscal year, is also expected to resubmit its draft IPO papers soon after pulling the initial filing due to unfavorable market conditions. However, its revenue from operations dropped slightly by 1.4%, from Rs 5,464 crore in FY23 to Rs 5,389 crore in FY24.
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