Oyo Acquires Motel 6 in $525 Million Deal

Indian hotel operator Oyo is acquiring budget motel chain Motel 6 and Studio 6 for $525 million in an all-cash transaction. The deal, expected to close by the end of the year, will expand Oyo's presence in the US. Blackstone, which owns G6 Hospitality, had previously invested $1.9 billion in 2012.

Indian hotel operator Oyo has struck a deal to acquire the budget motel chain Motel 6, along with Studio 6, in a $525 million all-cash transaction. The acquisition, announced by Motel 6's parent company G6 Hospitality's owner Blackstone, is expected to finalize by the end of the year.

Oyo aims to solidify its presence in the US market through this acquisition. The company, which currently operates 320 hotels across 35 states, plans to add an additional 250 locations this year. "This acquisition is a significant milestone for a startup company like us to strengthen our international presence," Gautam Swaroop, Oyo's international division chief, said in a statement.

Blackstone, a New York-based investment firm, purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, Blackstone has heavily invested in the brand, converting it into a franchise. Rob Harper, the head of Blackstone Real Estate Asset Management Americas, noted that the transaction is an ambitious business plan that more than tripled investor capital, generating over $1 billion in profit.