New York, Sep 21 — In a move set to bolster its international standing, Indian hospitality giant Oyo’s parent company, Oravel Stays, has announced the acquisition of Motel 6 and Studio 6 chains from Blackstone in a landmark $525 million cash transaction. With approximately 1,500 properties across the U.S. and Canada, this acquisition significantly strengthens Oyo’s presence in North America, a region where Indian American entrepreneurs already play a dominant role in the hospitality sector.
The acquisition includes G6 Hospitality, the parent company of the two budget-friendly lodging chains. Blackstone, which had previously acquired Motel 6 from Accor in 2012 for $1.9 billion, noted that Motel 6’s franchise network generates gross room revenues of $1.7 billion annually. Known for providing affordable yet reliable lodging across the U.S. and Canada, Motel 6 has established itself as a trusted brand in the budget hotel segment, while Studio 6 caters to guests seeking longer stays with additional amenities.
Gautam Swaroop, Oyo International’s CEO, confirmed that Motel 6 and Studio 6 would continue to operate as separate entities under their existing brand identities. “This acquisition marks a significant milestone for us as we look to strengthen our international presence,” Swaroop said. “Motel 6’s strong brand recognition, combined with Oyo’s entrepreneurial spirit and technological capabilities, will chart a sustainable path forward.”
Oyo plans to leverage its advanced technology platform, global distribution network, and marketing expertise to further elevate the Motel 6 and Studio 6 brands. This acquisition follows Oyo’s steady expansion in the U.S. since 2019, where it now operates 320 hotels across 35 states. According to Blackstone, Oyo’s growth trajectory in the region has been rapid, with the company acquiring around 100 properties last year alone.
While Blackstone is selling the Motel 6 and Studio 6 chains for a substantially lower price than its original purchase in 2012, the investment firm has seen significant returns. According to travel industry publication Skift, Blackstone strategically invested $900 million in improving the properties and then sold hundreds of them, ultimately generating over $1 billion in profit.
Motel 6, founded in 1962, originally offered rooms for just $6 a night. Today, it stands as a prominent player in the budget lodging industry, with many of its properties already run by Indian American hoteliers, who own about 60% of motels and hotels in the U.S. according to the Asian American Hotel Owners Association (AAHOA).
Oyo’s latest acquisition is a testament to its continued efforts to expand globally and make a mark in the competitive North American hospitality market.