OYO Completes $525 Million Acquisition of Motel 6 and Studio 6

OYO has acquired Motel 6 and Studio 6 from Blackstone for $525 million, marking a major expansion into North America. This strategic move is expected to boost OYO's EBITDA and overall growth, adding 1,500 hotels to its portfolio and enhancing its global footprint significantly.

OYO has successfully finalized its $525 million acquisition of the Motel 6 and Studio 6 brands from Blackstone Real Estate, as announced by the company on Monday. This landmark transaction serves to significantly bolster the reach and scale of the online hotels and hospitality services provider in the international market.

According to Monday's statement from OYO, the expected impact on OYO's financial performance is substantial, with projections of EBITDA surpassing Rs 2,000 crore during the fiscal year 2025-26. The Motel 6 acquisition alone is set to contribute an EBITDA of over Rs 630 crore. This deal brings approximately 1,500 franchised hotels across the US and Canada into OYO's fold, reflecting a marked increase in the company's North American market presence.

OYO anticipates that the combined entity will produce a gross booking value of around USD 3 billion, a significant portion of which will come from G6 Hospitality's USD 1.7 billion contribution. Since launching in the US in 2019, OYO has consistently expanded its footprint. Global CBO and M&A Head Ankit Tandon described the acquisition as transformative, enhancing both brand value and growth prospects. Meanwhile, Rakesh Prusti, Group General Counsel of OYO, acknowledged Blackstone's pivotal role in maintaining G6's core competencies, further priming them for this strategic expansion.

(With inputs from agencies.)