The finances motel chain Motel 6 is being got via the father or mother corporate of Oyo, a lodge operator founded in India. The New York-based funding company Blackstone, which owns Motel 6’s father or mother corporate G6 Hospitality, introduced Friday that the deal can be an all-cash transaction value $525 million. The transaction may even come with the sale of the Studio 6 motel logo, which caters to shoppers searching for prolonged remains. The deal is anticipated to near via the top of the yr. Oyo, which introduced in India simply over a decade in the past, has been increasing its footprint within the U.S. over the last few years. The corporate says it recently operates 320 motels throughout 35 states and is aiming so as to add 250 extra this yr. “This acquisition is a vital milestone for a startup corporate like us to reinforce our world presence,” Gautam Swaroop, OYO’s world department leader, stated in a commentary.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the personal fairness massive says it has closely invested within the logo and pursued a technique that transformed the chain right into a franchise.
“This transaction is an important consequence for buyers and is the end result of an bold marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in benefit over our hang length,” Rob Harper, the pinnacle of Blackstone Actual Property Asset Control Americas, stated in a commentary.Beneath the deal, Oravel Remains, which owns Oyo, will gain G6 Hospitality.
