Indian Budget Hotel Giant Oyo Buys Motel 6 for $525 Million
Oyo acquires the iconic Motel 6 brand from Blackstone Real Estate in an all-cash deal to massively expand its North American presence.
Indian budget hotel startup Oyo acquires G6 Hospitality, the parent company of Motel 6 and Studio 6, for $525 million in cash. The deal significantly boosts Oyo's footprint in North America, adding Motel 6's massive network of approximately 1,500 franchise locations across the United States and Canada to its existing portfolio of 320 U.S. hotels.
Motel 6 operates as a separate entity following the acquisition, which is expected to close in the fourth quarter of this year. Oyo's international CEO calls this purchase a major milestone that strengthens the company's global presence and cements its position in the competitive American budget lodging market.
The acquisition comes during a complex period for Oyo, as the SoftBank-backed startup faces ongoing challenges following pandemic-related struggles and past controversies over its business practices. Meanwhile, Motel 6's sale marks a steep decline from its $1.9 billion price tag when Blackstone originally purchased the iconic brand in 2012.