A Motel 6
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The funds motel chain Motel 6 is being acquired by the mother or father firm of Oyo, a lodge operator primarily based in India.
The New York-based funding agency Blackstone, which owns Motel 6’s mother or father firm G6 Hospitality, introduced Friday that the deal can be an all-cash transaction value $525 million.
The transaction can even embody the sale of the Studio 6 motel model, which caters to clients looking for prolonged stays. The deal is predicted to shut by the top of the yr.
Oyo, which launched in India simply over a decade in the past, has been increasing its footprint within the U.S. over the previous few years. The corporate says it at the moment operates 320 inns throughout 35 states and is aiming so as to add 250 extra this yr.
“This acquisition is a major milestone for a startup firm like us to strengthen our worldwide presence,” Gautam Swaroop, OYO’s worldwide division chief, stated in a press release.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the personal fairness big says it has closely invested within the model and pursued a technique that transformed the chain right into a franchise.
“This transaction is a terrific end result for buyers and is the end result of an bold marketing strategy that greater than tripled our buyers’ capital and generated over $1 billion in revenue over our maintain interval,” Rob Harper, the pinnacle of Blackstone Actual Property Asset Administration Americas, stated in a press release.
Underneath the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.