Tuesday, December 24, 2024 Oyo, a prominent travel-tech company, has completed the acquisition of G6 Hospitality, the operator of Motel 6 and Studio 6 brands, for $525 million. This strategic acquisition is poised to significantly enhance the company’s profitability, with its Ebitda (earnings before interest, taxes, depreciation, and amortization) expected to surpass ₹2,000 crore by FY26. The integration of Motel 6 is projected to contribute over ₹630 crore to Oyo’s Ebitda in the upcoming financial year.
This marks a substantial increase, building on the company’s adjusted Ebitda of ₹877 crore in FY24. The acquisition highlights Oyo’s focus on strengthening its profitability and expanding its portfolio of high-performing assets. This transaction adds around 1,500 franchised hotels across the US and Canada to Oyo’s portfolio, significantly bolstering its presence in the North American market.
The combined operations are forecasted to generate a gross booking value of $3 billion, with G6 Hospitality contributing $1.7 billion. In alignment with its growth strategy, Oyo plans to further expand the Motel 6 and Studio 6 brands, aiming to add more than 150 hotels in the region over the next year.
The acquisition positions Oyo to capitalize on growth opportunities in the US and Canada, where it currently operates in 35 states with approximately 400 hotels. Oyo continues to maintain a robust international presence, with over 184,000 properties across Europe, the UK, So.