India-based hospitality giant OYO Hotels & Homes is set to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, in a landmark $525 million all-cash transaction. The deal, announced by Blackstone Real Estate, marks a significant expansion for OYO into the U.S. hospitality market.

Blackstone, which acquired G6 Hospitality in 2012, transformed Motel 6 into a franchise operation and positioned it as a leader in the budget hotel segment. The acquisition by OYO underscores its ambition to strengthen its international footprint, particularly in North America.

"This acquisition is a significant milestone for a startup company like us to strengthen our international presence," remarked Gautam Swaroop, CEO of OYO International. OYO, through its subsidiary Oravel Stays, currently operates over 320 hotels across 35 states in the U.S., a market it entered aggressively in 2019.

G6 Hospitality, with an estimated gross room revenue of $1.7 billion, operates approximately 1,500 franchise properties across the U.S. and Canada. The acquisition is expected to complement OYO's existing portfolio and expand its reach in the competitive American hospitality sector.

Julie Arrowsmith, President and CEO of G6 Hospitality, expressed gratitude for the partnership with Blackstone, highlighting the transformation that has prepared G6 for this new phase. "OYO’s innovative approach to hospitality will allow us to enhance our offerings and provide great value to our guests while maintaining the iconic Motel 6 brand," Arrowsmith added.

The transaction is subject to regulatory approvals and is anticipated to close in the fourth quarter of 2024. OYO aims to continue operating Motel 6 and Studio 6 as separate entities, leveraging their strong brand recognition and financial profile to drive sustainable growth in the years ahead.