Oyo’s $525 Million Acquisition of Motel 6 Operator Expands North American Footprint
Staff Editor
1 min read
Oyo Acquires Motel 6 Operator in $525 Million Deal
Indian budget hotel company Oyo has announced a landmark acquisition of G6 Hospitality, the operator of Motel 6, in a deal valued at $525 million. The all-cash transaction, which includes the Studio 6 extended stay brand, is expected to close in the fourth quarter of this year.
This acquisition marks a significant expansion for Oyo in the North American market. Since opening its first U.S. location in 2019, Oyo has grown to operate more than 320 hotels across 35 states. The addition of Motel 6, a well-known budget motel brand with approximately 1,500 locations in the U.S. and Canada, will substantially increase Oyo’s footprint in the region.
Gautum Swaroop, Oyo International CEO, described the acquisition as a “significant milestone” for the company. He assured that Motel 6 will continue to operate as a separate entity under Oyo’s ownership.
Founded in 2012 and backed by SoftBank, Oyo was once valued at $10 billion in 2019. However, the company has faced challenges in recent years, including pandemic-related setbacks and criticism over certain business practices. Recent reports suggested a valuation drop to $2.5 billion, which Oyo has denied.
Motel 6, founded in 1962, popularized the budget motel concept in the United States, initially offering rooms for $6 a night. The chain was acquired by Blackstone for $1.9 billion in 2012 before this latest acquisition by Oyo.
This deal represents a major move in the budget hospitality sector, potentially reshaping the competitive landscape in North America’s economy lodging market.
