DALLAS, Texas — The company that owns motel brands Motel 6 and Studio 6 has been sold to an Indian firm for $525 million.
A news release from Blackstone Real Estate says Oravel Stays, which is the parent company of travel technology company OYO International, is acquiring G6 Hospitality from Blackstone in an all-cash transaction.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” said Gautam Swaroop, the CEO of OYO. “Motel 6′s strong brand recognition, financial profile and network in the U.S., combined with OYO’s entrepreneurial spirit, will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity.”
Oyo, which launched in India just over a decade ago, has been expanding its footprint in the U.S. over the past few years. The company says it currently operates 320 hotels across 35 states and is aiming to add 250 more this year.
There are about 1,500 Motel 6 and Studio 6 Extended Stay locations in the United States and Canada, according to the news release.
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement.
(The Associated Press contributed to this story.)
