OYO has officially completed its acquisition of Motel 6 and Studio 6 brands from Blackstone Real Estate for USD 525 million, marking a key moment in the company’s global expansion, OYO announced on Monday.
The deal, initially agreed upon on September 20, involved an all-cash transaction for G6 Hospitality, the parent company of the two hotel brands.
OYO Makes a Significant Acquisition
This acquisition is expected to significantly boost OYO’s earnings before interest, taxes, depreciation, and amortization (EBITDA), with a projected increase of over Rs 2,000 crore for the fiscal year 2025-26. Motel 6 is anticipated to contribute more than Rs 630 crore to this growth.
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With the addition of around 1,500 franchised hotels in the US and Canada, OYO’s North American presence is set to expand further. The acquisition is projected to result in a gross booking value of approximately USD 3 billion, with Motel 6 contributing about USD 1.7 billion, according to OYO’s statement.
OYO’s Growing Footprint
Since launching in the US in 2019, OYO has been steadily growing its footprint in the region. “This acquisition marks a pivotal shift in OYO’s global operations. With the strong brand recognition of Motel 6 in the US, we are confident this deal will drive significant value for OYO,” said Ankit Tandon, OYO’s Global CBO and Head of M&A.
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OYO’s recent financial performance has been strong, including its first-ever profit after tax of around Rs 229 crore in the fiscal year 2023-24 and a profit of Rs 132 crore in Q1 of 2024-25 “We’ve seen great support from Blackstone as investors in G6 Hospitality. Their strategic direction has set us up for success, and with the US market offering so much potential, this acquisition is a major step for OYO’s growth,” said Rakesh Prusti, Group General Counsel at OYO.
