IPO-bound travel tech platform OYO announced a significant move in the global hospitality sector by acquiring G6 Hospitality, the parent company of renowned American budget hotel chains Motel 6 and Studio 6. OYO is set to acquire the brands from Blackstone Real Estate in an all-cash transaction valued at USD 525 million.
The acquisition marks a major milestone in OYO’s international expansion, especially in the US, a key market for the Indian unicorn. Oravel Stays, OYO’s parent company, shared that the deal is expected to close in the fourth quarter of 2024, pending customary regulatory approvals.
G6 Hospitality, known for its iconic Motel 6 brand, operates more than 1,400 locations across the United States and Canada, making it a dominant player in the economy lodging segment. OYO’s acquisition will significantly enhance its presence in the US, giving the company a strong foothold in the budget hotel market.
Expanding US Presence
Commenting on the deal, OYO’s management emphasized that the acquisition aligns with their strategy to expand in the US, one of the world’s largest and most competitive hospitality markets. The deal enhances OYO’s offerings in budget-friendly accommodations and strengthens its operational capabilities through the established network of G6 Hospitality.
Motel 6, known for its slogan “We’ll leave the light on for you,” has been a household name in the American travel industry for decades, offering affordable lodging options to millions of travelers.
IPO Plans and Future Growth
OYO, which is preparing for its initial public offering (IPO), has been steadily growing its portfolio of properties across the globe. The acquisition of Motel 6 and Studio 6 is expected to further bolster OYO’s valuation ahead of its public listing.
The deal underscores OYO’s ambition to become a global leader in the hospitality space, as it continues to build a diverse portfolio across different regions and price segments.
Looking Ahead
With the transaction expected to close by the end of 2024, OYO is poised for greater influence in the US budget travel market. This strategic acquisition is likely to enhance its competitive edge as it gears up for its highly anticipated IPO, positioning OYO for sustained global growth in the coming years. (Source-PTI)
