Blackstone has achieved its long-rumored goal of selling G6 Hospitality, approving a deal to sell the company—including the Motel 6 and Studio 6 brands—to India’s Oravel Stays, parent company of the Oyo brand, for $525 million in an all-cash transaction. Blackstone acquired the business from Accor in 2012 as part of a $1.9 billion deal.
According to a report in the Wall Street Journal, Oyo is acquiring the brand “as part of its plans for ramping up its U.S. expansion.” The sale is expected to close in the fourth quarter, subject to customary closing conditions.
Oyo has expanded its footprint in the United States since its 2019 launch in the region and currently operates more than 320 hotels across 35 states, according to a statement from Blackstone. In 2023, Oyo added nearly 100 hotels to its U.S. portfolio and aims to add approximately 250 hotels in 2024. Motel 6’s franchise network produces gross room revenues of $1.7 billion.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, CEO OYO International, said in the statement. “Motel 6’s strong brand recognition, financial profile and network in the U.S., combined with Oyo’s entrepreneurial spirit, will be instrumental in charting a sustainable path forward for the company, which will continue to operate as a separate entity.”
“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter,” said Julie Arrowsmith, president and CEO at G6 Hospitality. “Oyo’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades.”
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” said Rob Harper, head of Blackstone Real Estate Asset Management Americas. “We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.”
Goldman Sachs & Co. acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett served as Blackstone’s legal advisor.