One of India’s largest startups, hotel chain operator Oyo, is set to acquire G6 Hospitality, the parent company behind Motel 6.
Oyo Hotels & Homes has announced plans to acquire Blackstone’s real estate portfolio for a staggering $525 million, with the deal set to be finalized through an all-cash transaction. The acquisition also includes our extended-stay Studio 6 brand, which is expected to close by the end of Q4 this year.
The Indian startup officially launched its inaugural US location. Operational since 2019, the company has grown to manage over 320 motels across 35 states. Oyo is making a significant expansion into North America by acquiring Motel 6, a well-established brand synonymous with budget-friendly accommodations, boasting a franchise network of approximately 1,500 locations across the United States and Canada.
Noting this significant milestone, Oyo Worldwide CEO Gautam Goenka proclaimed, “The global expansion of our startup is now more robust than ever.” Motel 6 will continue to operate independently.
SoftBank-backed Oyo, once valued at $10 billion in 2019, has faced significant struggles since then due to the pandemic’s impact and concerns over the company’s practice of offering rooms at unlicensed or unavailable hotels.
TechCrunch noted a notable decline in the company’s valuation over the summer, with it dropping to $2.5 billion – a sum lower than the total capital it had previously raised. Oyo has flatly rejected reports of a decline in its valuation.
In 1962, Motel 6 was founded. The brand revolutionized the budget-friendly lodging concept, introducing rooms priced at just $6 per night, before being acquired by Blackstone for a staggering $1.9 billion in 2012?
