The finances motel chain Motel 6 is being acquired by the dad or mum firm of Oyo, a resort operator primarily based in India.
The New York-based funding agency Blackstone, which owns Motel 6’s dad or mum firm G6 Hospitality, introduced Friday that the deal can be an all-cash transaction value $525 million.
The transaction will even embrace the sale of the Studio 6 motel model, which caters to prospects searching for prolonged stays. The deal is anticipated to shut by the tip of the yr.
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 lodges throughout 35 states and is aiming so as to add 250 extra this yr.
“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 non-public 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 end result for buyers and is the fruits of an bold marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval,” Rob Harper, the top of Blackstone Actual Property Asset Administration Americas, stated in an announcement.
Beneath the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.
