The budget motel chain Motel 6 is being acquired by the parent company of Oyo, an India-based hotel operator. Blackstone, the New York investment firm that owns G6 Hospitality, Motel 6’s parent company, announced the all-cash deal worth $525 million on Friday. The sale includes both the Motel 6 and Studio 6 brands, the latter catering to extended-stay customers. The transaction is expected to close by the end of the year.
Oyo, which started in India a little over a decade ago, has been steadily expanding in the U.S., currently operating 320 hotels across 35 states and aiming to add 250 more this year.
Gautam Swaroop, Oyo’s international division chief, called the acquisition a significant milestone in strengthening the company’s global presence.
Blackstone originally purchased Motel 6 and Studio 6 for $1.9 billion in 2012, investing heavily in converting the chain to a franchise.
Rob Harper, head of Blackstone Real Estate Asset Management Americas, described the sale as a major win for investors, having generated over $1 billion in profit during Blackstone’s ownership.
Peoplesmind