A Motel 6
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The finances motel chain Motel 6 is being acquired by the father or mother firm of Oyo, a lodge operator primarily based in India.
The New York-based funding agency Blackstone, which owns Motel 6’s father or mother firm G6 Hospitality, introduced Friday that the deal could be an all-cash transaction value $525 million.
The transaction may even embrace the sale of the Studio 6 motel model, which caters to prospects in search of 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 expanding its footprint within the U.S. over the previous few years. The corporate says it presently operates 320 lodges 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, mentioned in a press release.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the non-public fairness large 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 final result for traders and is the fruits of an bold marketing strategy that greater than tripled our traders’ capital and generated over $1 billion in revenue over our maintain interval,” Rob Harper, the top of Blackstone Actual Property Asset Administration Americas, mentioned in a press release.
Below the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.