Budget motel chain Motel 6 is to be acquired by the guardian firm of Oyo, an India-based resort operator.
New York-based funding agency Blackstone, which owns Motel 6’s guardian firm, G6 Hospitality, introduced Friday that the deal could be an all-cash transaction valued at $525 million.
The transaction may even embrace the sale of the Studio 6 motel model, which caters to company searching for prolonged stays. The deal is predicted to shut by the tip of the yr.
Oyo, launched in India a bit over a decade in the past, was expanding its footprint within the United States lately. The firm says it at the moment operates 320 accommodations in 35 states and goals so as to add 250 extra this yr.
“This acquisition is a major milestone for a startup like ours, aiming to strengthen our worldwide presence,” Gautam Swaroop, head of worldwide enterprise at OYO, mentioned in an announcement.
Blackstone purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the non-public fairness big says it has invested closely within the model and pursued a method that has transformed the chain right into a franchise.
“This transaction represents an amazing consequence for traders and is the fruits of an formidable marketing strategy that has greater than tripled our traders’ capital and generated over $1 billion in holding interval earnings,” Rob Harper, head of Blackstone Real Estate Asset Management Americas, mentioned in an announcement.
Under the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.
