OYO acquires US-based G6 Hospitality from Blackstone for $525M
OYO, the leading hospitality service provider, has successfully acquired Motel 6 and Studio 6 brands from Blackstone Real Estate. The deal was sealed at $525 million and marks a significant expansion of OYO's global presence. The acquisition was an all-cash transaction and is expected to boost OYO's EBITDA to over ₹2,000 crore in the next financial year.
Acquisition expands OYO's North American presence
The acquisition of G6 Hospitality, the parent firm of Motel 6 and Studio 6, brings around 1,500 franchised hotels across the US and Canada into OYO's portfolio. The move notably bolsters its North American presence. The two companies together are tipped to generate a gross booking value of around $3 billion, with G6 Hospitality accounting for $1.7 billion of it.
Financial growth and future prospects
OYO has been on a steady financial growth path, reporting its first profit after tax of ₹229 crore in 2023-24, followed by a profit of ₹132 crore in Q1 2024-25. Ankit Tandon, Global Chief Business Officer and Head of Mergers and Acquisitions (M&A) at OYO, said, "This acquisition represents a transformative moment for OYO's global operations." He also emphasized the potential for growth and synergies due to their strong brand franchise in the US.
OYO's strategic move in the US market
Meanwhile, Rakesh Prusti, Group General Counsel at OYO, noted Blackstone's position as a good investor for G6 Hospitality. He said, "The US is an attractive market for us and this acquisition will provide a strong growth impetus." OYO's strategic move highlights its focus on expanding its global footprint and seizing opportunities in the lucrative US market.
