Motel 6, the finances resort chain that has covered American highways for many years, will likely be bought to Oyo, an India-based resort operator, the firms introduced on Friday.Blackstone, the personal fairness large and the landlord of Motel 6’s father or mother corporate, stated the transaction could be an all-cash deal for $525 million. The deal is predicted to near ahead of the tip of the yr, and would come with the chain’s offshoot resort logo, Studio 6.Oyo expanded into america in 2019, and has just lately ramped up efforts to make bigger additional. It lately operates greater than 300 inns locally. The corporate, which makes a speciality of finances inns and proudly describes itself as “a start-up,” had gained a big funding from SoftBank. However some troubling incidents in India lately raised questions on a few of its trade practices.Motel 6 used to be based in 1962 in Santa Barbara, Calif., and has been an indelible a part of Americana for its fundamental lodging. The Motel 6 title at first got here from the corporate’s providing of an all-cash $6-a-night charge. Motel 6 and Studio 6 lately have more or less 1,500 inns throughout america and Canada, Blackstone stated.Gautam Swaroop, the manager government of Oyo Global, praised Motel 6’s “sturdy logo reputation, monetary profile and community within the U.S.” He added, “This acquisition is a vital milestone for a start-up corporate like us to reinforce our world presence.”Blackstone bought Motel 6 in 2012 for $1.9 billion.“This transaction is an incredible consequence for traders and is the end result of an formidable marketing strategy that greater than tripled our traders’ capital and generated over $1 billion in benefit over our hang length,” Rob Harper, a senior managing director at Blackstone, stated in a commentary.
