Oravel Stays, the dad or mum firm of the worldwide journey know-how firm OYO, has agreed to amass G6 Hospitality, from Blackstone Actual Property for $525 million in an all-cash transaction.
G6 Hospitality is the main economic system lodging franchisor and dad or mum firm of the long-lasting Motel 6 and Studio 6 manufacturers.
OYO has expanded its footprint in the USA since its launch within the area in 2019 and at the moment operates over 320 lodges throughout 35 states. In 2023, OYO added almost 100 lodges to its US portfolio and goals so as to add 250 lodges in 2024.
“This acquisition is a major milestone for a startup firm like us to strengthen our worldwide presence. Motel 6’s sturdy model recognition, monetary profile and community within the US, mixed with OYO’s entrepreneurial spirit will probably be instrumental in charting a sustainable path ahead for the corporate which can proceed to function as a separate entity,” stated Gautam Swaroop, CEO OYO Worldwide.
Motel 6’s franchise community produces gross room revenues of $1.7 billion, which generates a robust charge base and money move for G6. OYO will leverage its complete know-how suite in addition to its world distribution community and advertising experience to additional strengthen the Motel 6 and Studio 6 manufacturers and drive continued monetary development.
Underneath its possession, Blackstone invested important capital to create worth and improve the Motel 6 model, together with executing a technique to remodel the enterprise into a number one asset gentle lodging firm with a franchise community of 1,500 lodges throughout the USA and Canada.
Julie Arrowsmith, President and CEO at G6 Hospitality, stated, “We’re grateful for our profitable partnership with Blackstone and the transformation that has positioned us effectively for this new chapter. OYO’s revolutionary strategy to hospitality will permit us to reinforce our choices and nice worth to our visitors whereas sustaining the long-lasting Motel 6 model that travellers have trusted for over six many years.”
The transaction is predicted to shut within the fourth quarter of 2024, topic to customary closing circumstances.
Rob Harper, Head of Blackstone Actual Property Asset Administration Americas, stated, “This transaction is a terrific consequence for buyers and is the fruits of an bold marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval. We consider G6 is extraordinarily well-positioned for the longer term and we sit up for seeing its manufacturers proceed their success within the years to return.”
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Companions acted as monetary advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s authorized advisor.
