The spending plan motel chain Motel 6 is being gotten by the moms and dad firm of Oyo, a resort driver based in India.
The New York- based investment company Blackstone, which possesses Motel 6’s moms and dad firm G6 Hospitality, revealed Friday that the bargain would certainly be an all-cash purchase worth $525 million.
The purchase will certainly additionally consist of the sale of the Studio 6 motel brand name, which accommodates clients looking for expanded keeps. The bargain is anticipated to nearby completion of the year.
Oyo, which released in India simply over a years earlier, has actually been expanding its footprint in the united state over the previous couple of years. The firm states it presently runs 320 resorts throughout 35 states and is intending to include 250 much more this year.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO’s worldwide department principal, claimed in a declaration.
Blackstone had actually bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since after that, the exclusive equity titan states it has actually greatly purchased the brand name and sought an approach that transformed the chain right into a franchise business.
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” Rob Harper, the head of Blackstone Real Estate Asset Management Americas, claimed in a declaration.
Under the bargain, Oravel Stays, which possesses Oyo, will certainly get G6 Hospitality.
The Associated Press
