The price range motel chain Motel 6 is being acquired by the father or mother firm of Oyo, a resort operator based mostly 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 can be an all-cash transaction value $525 million.
The transaction can even embrace the sale of the Studio 6 motel model, which caters to clients searching for prolonged stays. The deal is anticipated 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 present operates 320 inns throughout 35 states and is aiming so as to add 250 extra this yr.
“This acquisition is a big milestone for a startup firm like us to strengthen our worldwide presence,” Gautam Swaroop, OYO’s worldwide division chief, stated in an announcement.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the non-public fairness big says it has closely invested within the model and pursued a method that transformed the chain right into a franchise.
“This transaction is a terrific end 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, stated in an announcement.
Underneath the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.
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