A Motel 6
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The price range motel chain Motel 6 is being acquired by the mum or dad firm of Oyo, a lodge operator primarily based in India.
The New York-based funding agency Blackstone, which owns Motel 6’s mum or dad firm G6 Hospitality, introduced Friday that the deal could be an all-cash transaction price $525 million.
The transaction will even embody the sale of the Studio 6 motel model, which caters to clients in search of prolonged stays. The deal is anticipated to shut by the top of the yr.
Oyo, which launched in India simply over a decade in the past, has been increasing its footprint within the U.S. over the previous few years. The corporate says it at the moment operates 320 accommodations throughout 35 states and is aiming so as to add 250 extra this yr.
“This acquisition is a major milestone for a startup firm like us to strengthen our worldwide presence,” Gautam Swaroop, OYO’s worldwide division chief, stated in a press release.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the personal fairness big says it has closely invested within the model and pursued a method that transformed the chain right into a franchise.
“This transaction is a terrific consequence for buyers and is the end result of an formidable marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval,” Rob Harper, the top of Blackstone Actual Property Asset Administration Americas, stated in a press release.
Below the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.
