OYO Acquires Iconic Motel 6 and Studio 6 Brands in $525 Million Deal

IPO-bound travel tech platform OYO has announced its acquisition of the American budget hotel chain Motel 6 and Studio 6 brands from Blackstone Real Estate for USD 525 million in an all-cash deal. The transaction, expected to close in Q4 2024, will significantly bolster OYO's presence in the U.S. market.

In a significant move towards global expansion, IPO-bound travel tech platform OYO has agreed to acquire iconic American budget hotel chain Motel 6 and its offshoot brand Studio 6 from Blackstone Real Estate for USD 525 million in an all-cash transaction, the company announced on Saturday.

Oravel Stays, OYO's parent company, confirmed that the acquisition involves G6 Hospitality, the leading economy lodging franchisor and parent company of Motel 6 and Studio 6. This transaction is expected to be finalized in the fourth quarter of 2024, subject to customary closing conditions.

Motel 6's franchise network, which generates gross room revenues of USD 1.7 billion, is expected to provide a robust fee base and cash flow for OYO, enhancing its financial position. OYO plans to leverage its technology suite and global distribution network to strengthen the Motel 6 and Studio 6 brands further, driving continued financial growth.

(With inputs from agencies.)