OYO Completes Acquisition of US-Based G6 Hospitality for $525 Million

The Indian firm OYO has completed its acquisition of US-based G6 Hospitality in an all-cash transaction.

OYO's Acquisition

OYO has bought G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million. This recent purchase will now aid in expanding OYO's presence in the American as well as the global market.

The deal was initially agreed upon on September 20, 2024, and as per OYO's statement, the deal is projected to increase their EBITDA to over ₹2000 crore in the financial year of 2025-26. Motel 6 will add ₹630 crore to OYO's EBITDA.

Because of the newly scripted deal, OYO will now have around 1500 hotels under its name in the American market as well as the Canadian market. These new properties are also said to add up to a booking value of around $3 billion, where G6 Hospitality's stake in the figure will be around $1.7 billion.

"This acquisition represents a transformative moment for OYO's global operations. We could see this will be a value accretive acquisition due to their strong brand franchise in USA, potential for growth and synergies. Through the acquisition process and the conclusion, that belief is further strengthened," stated Ankit Tandon, global CBO and head of M&A, OYO.