This Jan. 3, 2018 document photograph displays a Motel 6 in SeaTac, Wash.
Elaine Thompson/AP
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Elaine Thompson/AP
Motel 6, the financial system funds motel that has existed for 6 many years, introduced that it’ll be obtained via Oyo, an Indian-based go back and forth corporate, in a multi-million greenback sale. However there’s no want to concern; the motel chain will nonetheless go away its gentle on for you. Motel 6’s father or mother corporate, Blackstone, launched a remark Friday outlining that the deal could be an all-cash transaction totaling $525 million. As a part of the multimillion-dollar transaction, the corporate will even promote its Studio 6 logo, its chain of extended-stay inns. Blackstone stated that the all-cash transaction is anticipated to be finished via the top of this 12 months.
“This acquisition is a vital milestone for a start-up corporate like us to beef up our world presence,” Oyo Global’s leader government, Gautam Swaroop, stated in a remark.
Oyo, which expanded into the U.S. 5 years in the past, used to be based in 2013 and operates 320 inns throughout 35 states. Closing 12 months, the India-based corporate added kind of 100 further inns to its U.S. portfolio. “Motel 6’s robust logo reputation, monetary profile and community in the United States, mixed with Oyo’s entrepreneurial spirit will likely be instrumental in charting a sustainable trail ahead for the corporate which can proceed to function as a separate entity,” Swaroop stated. Blackstone’s sale of Motel 6 and Studio 6 comes because the U.S. resort business continues to get well post-pandemic. As up to now reported via NPR, federal information confirmed that during 2024, virtually 200,000 fewer other people paintings in inns and different accommodation than sooner than the pandemic. Jan Freitag, an analyst with actual property information company CoStar, instructed NPR that occupancy for economy-class inns within the first 8 months of this 12 months used to be about 54.2%, down 2.2% from a 12 months in the past. Moreover, he says that room charges for economy-class inns are round $79, down 1% from a 12 months in the past.
Freitag, who tracks hospitality analytics for CoStar, says the large query is whether or not Oyo will lean into the logo title it bought or the title it these days has. “You have got noticed that businesses have used the father or mother title underneath the logo, so Courtyard via Marriott, Hilton Lawn Inn,” he stated. “So, is there going to be Motel 6 via Oyo or are they, through the years, converting the title.” Motel 6 used to be based in 1962 in Santa Barbara, Calif., via two development corporate house owners who struggled to seek out reasonably priced, dependable choices for his or her paintings crews and households touring around the U.S.
Motel 6 and Studio 6 have just about 1,500 inns around the U.S. and Canada. Blackstone, a New York-based corporate, bought the motel chain in 2012 for $1.9 billion.
