Motel 6, the iconic budget hotel chain known for its long-standing presence along U.S. highways, is set to be acquired by OYO, an Indian hotel operator,͏͏ according͏͏ to͏͏ the͏͏ companies’͏͏ announcement.
All-Cash͏͏ Deal͏͏ Expected͏͏ to͏͏ Finalize͏͏ by͏͏ Year-End:
Blackstone,͏͏ the͏͏ private͏͏ equity͏͏ giant͏͏ and͏͏ owner͏͏ of͏͏ Motel͏͏ 6’s͏͏ parent͏͏ company,͏͏ announced͏͏ that͏͏ the͏͏ transaction͏͏ will͏͏ be͏͏ an͏͏ all-cash͏͏ deal͏͏ valued͏͏ at͏͏ $525͏͏ million.͏͏ The͏͏ acquisition͏͏ is͏͏ expected͏͏ to͏͏ be͏͏ finalized͏͏ before͏͏ the͏͏ year’s͏͏ end͏͏ and͏͏ will͏͏ also͏͏ encompass͏͏ the͏͏ chain’s͏͏ subsidiary͏͏ brand,͏͏ Studio͏͏ 6.
Continue͏͏ Exploring:͏͏ OYO acquires͏͏ Paris-based͏͏ rental͏͏ company͏͏ Checkmyguest͏͏ for͏͏ $27.4͏͏ Mn
OYO’s͏͏ Rapid͏͏ Growth͏͏ in͏͏ the͏͏ U.S.͏͏ Market:
OYO͏͏ made͏͏ its͏͏ debut͏͏ in͏͏ the͏͏ U.S.͏͏ in͏͏ 2019͏͏ and͏͏ has͏͏ since͏͏ accelerated͏͏ its͏͏ growth,͏͏ now͏͏ managing͏͏ more͏͏ than͏͏ 300͏͏ hotels͏͏ nationwide.͏͏ The͏͏ company,͏͏ which͏͏ emphasises͏͏ budget-friendly͏͏ options͏͏ and͏͏ labels͏͏ itself͏͏ as͏͏ “a͏͏ startup,”͏͏ attracted͏͏ substantial͏͏ investment͏͏ from͏͏ SoftBank.͏͏ Nonetheless,͏͏ recent͏͏ troubling͏͏ events͏͏ in͏͏ India͏͏ have͏͏ raised͏͏ concerns͏͏ regarding͏͏ some͏͏ of͏͏ its͏͏ business͏͏ practices.
Founded͏͏ in͏͏ 1962͏͏ in͏͏ Santa͏͏ Barbara,͏͏ California,͏͏ Motel͏͏ 6͏͏ has͏͏ become͏͏ a͏͏ significant͏͏ part͏͏ of͏͏ Americana,͏͏ known͏͏ for͏͏ its͏͏ basic͏͏ accommodations.͏͏ The͏͏ name͏͏ “Motel͏͏ 6″͏͏ originated͏͏ from͏͏ the͏͏ company’s͏͏ original͏͏ all-cash͏͏ rate͏͏ of͏͏ $6͏͏ per͏͏ night.͏͏ According͏͏ to͏͏ Blackstone,͏͏ Motel͏͏ 6͏͏ and͏͏ its͏͏ sister͏͏ brand͏͏ Studio͏͏ 6͏͏ now͏͏ operate͏͏ around͏͏ 1,500͏͏ hotels͏͏ across͏͏ the͏͏ United͏͏ States͏͏ and͏͏ Canada.
Strategic͏͏ Acquisition͏͏ to͏͏ Boost͏͏ OYO’s͏͏ Global͏͏ Presence:
Gautam͏͏ Swaroop,͏͏ CEO͏͏ of͏͏ OYO͏͏ International,͏͏ highlighted͏͏ Motel͏͏ 6’s͏͏ “strong͏͏ brand͏͏ recognition,͏͏ solid͏͏ financial͏͏ profile,͏͏ and͏͏ extensive͏͏ network͏͏ in͏͏ the͏͏ U.S.”͏͏ He͏͏ noted͏͏ that͏͏ this͏͏ acquisition͏͏ marks͏͏ a͏͏ significant͏͏ milestone͏͏ for͏͏ a͏͏ startup͏͏ like͏͏ OYO,͏͏ helping͏͏ to͏͏ enhance͏͏ its͏͏ international͏͏ presence.
Blackstone͏͏ acquired͏͏ Motel͏͏ 6͏͏ in͏͏ 2012͏͏ for͏͏ $1.9͏͏ billion.
“This͏͏ transaction͏͏ represents͏͏ an͏͏ excellent͏͏ outcome͏͏ for͏͏ investors͏͏ and͏͏ reflects͏͏ the͏͏ success͏͏ of͏͏ an͏͏ ambitious͏͏ business͏͏ plan͏͏ that͏͏ has͏͏ more͏͏ than͏͏ tripled͏͏ our͏͏ investors’͏͏ capital͏͏ and͏͏ generated͏͏ over͏͏ $1͏͏ billion͏͏ in͏͏ profit͏͏ during͏͏ our͏͏ ownership,”͏͏ said͏͏ Rob͏͏ Harper,͏͏ a͏͏ senior͏͏ managing͏͏ director͏͏ at͏͏ Blackstone,͏͏ in͏͏ a͏͏ statement.
