Business
The finances motel chain Motel 6 is being acquired by the parent company of Oyo, a hotel operator based in India.
The Fresh York-based investment agency Blackstone, which owns Motel 6’s parent company G6 Hospitality, announced Friday that the deal may perhaps be an all-cash transaction price $525 million.
The transaction will also include the sale of the Studio 6 motel brand, which caters to customers seeking prolonged stays. The deal is anticipated to nearby the finish of the year.
Oyo, which launched in India appropriate over a decade ago, has been expanding its footprint in the U.S. over the past few years. The company says it at indicate operates 320 lodges across 35 states and is aiming to add 250 extra this year.
“This acquisition is a significant milestone for a startup company adore us to reinforce our international presence,” Gautam Swaroop, OYO’s international division chief, said in a statement.
Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private fairness giant says it has heavily invested in the brand and pursued a strategy that transformed the chain into a franchise.
“This transaction is a terrific consequence for investors and is the culmination of an ambitious business plan that extra than tripled our investors’ capital and generated over $1 billion in profit over our defend duration,” Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement.
Below the deal, Oravel Stays, which owns Oyo, will acquire G6 Hospitality.
