Global Travel Technology Company OYO to Acquire G6 Hospitality from Blackstone Real Estate
20 Septiembre 2024 - 3:35PM
Business Wire
Oravel Stays, the parent company of the global travel technology
company OYO, today announced that it has agreed to acquire G6
Hospitality, the leading economy lodging franchisor and parent
company of the iconic Motel 6 and Studio 6 brands, from Blackstone
Real Estate for $525 million, in an all-cash transaction.
OYO has steadily expanded its footprint in the United States
since its launch in the region in 2019 and currently operates over
320 hotels across 35 states. In 2023, OYO added nearly 100 hotels
to its US portfolio and aims to add ~250 hotels in 2024. Motel 6’s
franchise network produces gross room revenues of $1.7 billion,
which generates a strong fee base and cash flow for G6. OYO will
leverage its comprehensive technology suite as well as its global
distribution network and marketing expertise to further strengthen
the Motel 6 and Studio 6 brands and drive continued financial
growth.
"This acquisition is a significant milestone for a startup
company like us to strengthen our international presence. Motel 6's
strong brand recognition, financial profile and network in the US,
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," said Gautam Swaroop,
CEO OYO International.
Under its ownership, Blackstone invested significant capital to
create value and enhance the Motel 6 brand, including executing a
strategy to transform the business into a leading asset light
lodging company with a franchise network of ~1500 hotels across the
United States and Canada.
Julie Arrowsmith, President and Chief Executive Officer at G6
Hospitality, said, “We are grateful for our successful
partnership with Blackstone and the transformation that has
positioned us well for this new chapter. OYO's innovative approach
to hospitality will allow us to enhance our offerings and great
value to our guests while maintaining the iconic Motel 6 brand that
travelers have trusted for over six decades.”
Rob Harper, Head of Blackstone Real Estate Asset Management
Americas, said, "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. We believe G6 is extremely
well-positioned for the future and we look forward to seeing its
brands continue their success in the years to come.”
The transaction is expected to close in the fourth quarter of
2024, subject to customary closing conditions.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor
and Jones Lang LaSalle Securities, LLC and PJT Partners acted as
financial advisors. Simpson Thacher & Bartlett LLP served as
Blackstone’s legal advisor.
About OYO
OYO is a global platform that empowers entrepreneurs and small
businesses with hotels and homes by providing full-stack technology
products and services that aim to increase revenue and ease
operations; bringing easy-to-book, affordable, and trusted
accommodation to customers around the world. OYO offers 40+
integrated products and solutions to patrons who operate over 175K
hotel and home storefronts in more than 35 countries including
India, Europe and Southeast Asia. For more information, visit
here.
About G6 Hospitality LLC
G6 Hospitality LLC is a leading economy lodging franchisor, with
nearly 1,500 economy lodging locations under the iconic Motel 6
brand and the Studio 6 Extended Stay brand in the United States and
Canada. G6 Hospitality is committed to making hospitality
accessible to all through responsible business practices and
unparalleled opportunity for franchisees to build a legacy through
ownership. Both Motel 6 and Studio 6 were recognized in the 2024
Entrepreneur Franchise 500® report, with Motel 6 ranking in the top
50 of all franchises. The Carrollton, Texas, based company was
named a 2024 Leader in Diversity by Dallas Business Journal. For
more information, please visit http://www.g6hospitality.com/.
About Blackstone Real Estate
Blackstone is a global leader in real estate investing.
Blackstone’s real estate business was founded in 1991 and has US
$336 billion of investor capital under management. Blackstone is
the largest owner of commercial real estate globally, owning and
operating assets across every major geography and sector, including
logistics, data centers, residential, office and hospitality. Our
opportunistic funds seek to acquire undermanaged, well-located
assets across the world. Blackstone’s Core+ business invests in
substantially stabilized real estate assets globally, through both
institutional strategies and strategies tailored for income-focused
individual investors including Blackstone Real Estate Income Trust,
Inc. (BREIT). Blackstone Real Estate also operates one of the
leading global real estate debt businesses, providing comprehensive
financing solutions across the capital structure and risk spectrum,
including management of Blackstone Mortgage Trust (NYSE: BXMT).
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OYO Anupriya Malik Anupriya.d@oyorooms.com G6
Hospitality Maggie Giddens Giddens_Maggie@g6hospitality.com
Blackstone Jeffrey Kauth Jeffrey.Kauth@Blackstone.com
Blackstone (NYSE:BX)
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