Oyo snaps up US chain Motel 6 in $525 million all-cash deal, eyes overseas expansion.

IPO-bound travel tech platform OYO on Saturday announced it has agreed to acquire iconic American budget hotel chain Motel 6 and Studio 6 brands from Blackstone Real Estate for USD 525 million in an all-cash transaction, as the Indian unicorn eyes expansion in the US. Oravel Stays, the parent company of OYO stated that it has agreed to acquire G6 Hospitality, the leading economy lodging franchisor and parent company of Motel 6, and the chain's offshoot hotel brand, Studio 6.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Motel 6's franchise network produces gross room revenues of USD 1.7 billion, which generates a strong fee base and cash flow for G6.

OYO will leverage its comprehensive technology suite as well as its global distribution network and marketing expertise to further strengthen the Motel 6 and Studio 6 brands and drive continued financial growth, it stated.

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