In a bold move to expand its presence in the US market, IPO-bound travel tech platform OYO has agreed to acquire the renowned American budget hotel chain Motel 6 and its offshoot, Studio 6, for USD 525 million in an all-cash transaction. OYO's parent company, Oravel Stays, announced the acquisition from Blackstone Real Estate, positioning the Indian unicorn for significant growth in the US hospitality sector. The deal is expected to close by the fourth quarter of 2024, subject to customary regulatory approvals.

Motel 6, an iconic name in the budget lodging segment with over 1,500 properties across the US and Canada, brings in a substantial gross room revenue of USD 1.7 billion. Under Blackstone's ownership, the brand underwent strategic transformation, shifting to an asset-light franchise model. The acquisition aligns with OYO's vision of strengthening its international footprint, especially in North America, where it currently operates more than 320 hotels across 35 states. In 2023 alone, OYO added nearly 100 hotels to its US portfolio and has plans to add 250 more in 2024.

Gautam Swaroop, CEO of OYO International, expressed enthusiasm about the acquisition: "This acquisition is a significant milestone for a startup company like ours, enabling us to build on Motel 6's strong brand recognition and financial foundation. Together, we aim to chart a sustainable path forward while maintaining Motel 6's iconic presence."

OYO plans to integrate its comprehensive technology suite, global distribution network, and marketing expertise to further elevate the Motel 6 and Studio 6 brands. With its technology-driven approach to hospitality, OYO aims to enhance guest experiences and drive continued financial growth for the newly acquired brands.

Julie Arrowsmith, CEO of G6 Hospitality, welcomed the acquisition, stating, “OYO’s innovative approach will allow us to enhance our offerings and continue providing the value that Motel 6 guests have trusted for over six decades.” Blackstone's Rob Harper also highlighted the strong return on investment, noting that the deal tripled investors' capital and generated over USD 1 billion in profits.

This acquisition signals OYO's ambitions to solidify its standing in the global hospitality industry and marks another chapter in its aggressive international expansion strategy.