India-based travel tech provider OYO, whose U.S. headquarters is in Dallas, is acquiring Carrollton-based G6 Hospitality—the parent company of Motel 6 and Studio 6—from Blackstone Real Estate for $525 million. 

The announcement of the all-cash deal was made Friday by OYO’s parent company, Oravel Stays.

Motel 6’s franchise network produces gross room revenues of $1.7 billion. OYO said the acquisition 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.”

OYO’s global portfolio includes more than 44,000 hotels with over 1.2 million rooms. The company launched in the U.S. in 2019 and currently operates over 320 hotels across 35 states out of its Dallas U.S. HQ. In 2023, The India company added nearly 100 hotels to its U.S. portfolio and aims to add around 250 more this year.

Blackstone acquired G6 Hospitality from Accor in 2012 as part of a $1.9 billion deal.  Rob Harper, head of Blackstone Real Estate Asset Management Americas, said the 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.”

Under its 12-year ownership, Blackstone invested “significant capital” to create value and enhance the Motel 6 brand, transforming the business into a leading asset-light lodging company with a franchise network of around 1,500 hotels across the U.S. and Canada.

“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,” added Harper. 

Citing OYO’s ‘innovative approach to hospitality’

Julie Arrowsmith, president and CEO of G6 Hospitality, said G6 is “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.”

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” OYO International CEO Gautam Swaroop said in a statement. “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.”

OYO said it offers over 40 integrated products and solutions to customers who operate over 175,000 hotel and home storefronts in more than 35 countries including India, Europe, and Southeast Asia.

The transaction is slated to close in Q4 2024. Goldman Sachs acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett served as Blackstone’s legal advisor.

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