- Oyo acquires Motel 6 for $525 million
- Indian startup expands U.S. footprint dramatically
- Deal marks major milestone despite Oyo’s recent valuation challenges
Budget Behemoths Unite
Indian startup Oyo is making waves in the hospitality sector, acquiring G6 Hospitality, the operator of Motel 6, for a cool $525 million.
This all-cash deal Blackstone Real Estate includes the Studio 6 extended stay brand, set to close by year-end.
Oyo’s American Dream
Oyo’s U.S. journey began in 2019 320 hotels across 35 states. Now, it’s snagging Motel 6, America’s iconic budget motel brand, boasting 1,500 locations stateside and in Canada.
Oyo International CEO Gautum Swaroop assures Motel 6 fans: the brand will “continue to operate as a separate entity.”
Rocky Road to Expansion
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SoftBank-backed Oyo’s path hasn’t been smooth. Once valued at $10 billion, it’s faced pandemic woes and criticism over questionable practices.
Recent reports suggest a valuation plummet to $2.5 billion, though Oyo disputes this figure. Motel 6, founded in 1962, brings its budget legacy to the table, having been under Blackstone’s wing since a $1.9 billion acquisition in 2012.
