The deal includes Motel 6 and Studio 6 brands, with G6 continuing as a separate entity while Oyo leverages its technology to strengthen these brands. MUMBAI: Travel tech platform Oyo is acquiring US-based G6 Hospitality which runs budget hotel brands Motel 6 and Studio 6 from Blackstone Real Estate in a $525 million all-cash deal, the startup said on Saturday. The deal will boost Oyo's expansion in the US, a market where it has been building its presence since the past five years with a portfolio that currently spans over 320 hotels across 35 states.
The unicorn startup has been aggressively broadening its presence in the US, among its top five markets already, and plans to add another 250 hotels in the region this year. Besides, the acquisition will also allow Oyo to gain a foothold in Canada where it manages some hotels and which is reported under the US region. G6 Hospitality runs about 1,500 economy lodging locations under the Motel 6 and the Studio 6 brands in the US and Canada.
G6 Hospitality will continue to operate as a separate entity post the acquisition. Oyo said that it will build on this acquisition by leveraging its technology stack and global distribution network to further strengthen the Motel 6 and Studio 6 brands. Motel 6's franchise network produces gross room revenues of $1.
7 billion, generating a healthy fee base and cash flow for G6. The deal comes at a time when travelling has picked up globally following a pandemic led slump, boosting businesses like h.