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A Motel 6
Fort Price Star-Telegram | Tribune Information Service | Getty Photos
The finances motel chain Motel 6 is being acquired by the guardian firm of Oyo, a resort operator primarily based in India.
The New York-based funding agency Blackstone, which owns Motel 6’s guardian firm G6 Hospitality, introduced Friday that the deal could be an all-cash transaction price $525 million.
The transaction may even embrace the sale of the Studio 6 motel model, which caters to clients looking for prolonged stays. The deal is anticipated to shut by the tip of the 12 months.
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 resorts throughout 35 states and is aiming so as to add 250 extra this 12 months.
“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 an announcement.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the personal fairness large says it has closely invested within the model and pursued a technique that transformed the chain right into a franchise.
“This transaction is a terrific final result 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 pinnacle of Blackstone Actual Property Asset Administration Americas, stated in an announcement.
Below the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.
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