Guest House 6
Fort Worth Star-Telegram | Tribune News Service | Getty Images
The budget motel chain Motel 6 is being owned by the parent company of Oyoan India-based hotel operator.
New York-based investment firm SlatMotel 6 parent company G6 Hospitality, which owns the company, announced Friday that the deal will be made all in cash for $525 million.
The transaction will also include the sale of the Studio 6 brand of motels, which cater to customers looking for extended stays. The deal is expected to close by the end of the year.
Oyo, which launched in India more than a decade ago, has expand its footprint in the United States over the past few years. The company says it currently operates 320 hotels across 35 states and is aiming to open 250 more this year.
“This acquisition is a significant milestone for a startup like us to strengthen our presence in the international arena,” Gautam Swaroop, head of international at OYO, said in a statement.
Blackstone bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant said it has invested heavily in the brand and pursued a strategy of converting the chain into a franchise.
“This transaction is a great outcome for investors and the culmination of an ambitious business plan that has tripled investors’ capital and generated over $1 billion in returns over our tenure,” Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in a statement.
Under the deal, Oravel Stays, the company that owns Oyo, will acquire G6 Hospitality.
