In 2023, OYO included almost 100 resorts to its United States profile and intends to include regarding 250 resorts in 2024.
OYO has actually consented to get famous US-based budget plan resort chain Motel 6 and Studio 6 brand names from Blackstone Real Estate for $525 million in an all-cash deal, as the Indian unicorn eyes growth in the United States.
IPO-bound traveling technology system OYO on Saturday stated it has actually consented to get famous US-based budget plan resort chain Motel 6 and Studio 6 brand names from Blackstone Real Estate for $525 million in an all-cash deal, as the Indian unicorn eyes growth in the United States.
Oravel Stays, the moms and dad business of OYO, specified that it has actually consented to get G6 Hospitality, the leading economic climate accommodations franchisor and moms and dad business of Motel 6 and the chain’s descendant resort brand name, Studio 6.
The deal is anticipated to enclose the 4th quarter of 2024, based on traditional closing problems.
Motel 6’s franchise business network generates gross space profits of USD 1.7 billion, which creates a solid cost base and capital for G6.
OYO will certainly take advantage of its extensive innovation collection in addition to its international circulation network and advertising experience to more enhance the Motel 6 and Studio 6 brand names and drive proceeded economic development, it specified.
The traveling technology system has actually progressively increased its impact in the United States because its launch in the area in 2019 and runs over 320 resorts throughout 35 states.
In 2023, OYO included almost 100 resorts to its United States profile and intends to include regarding 250 resorts in 2024.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence. Motel 6’s strong brand recognition, financial profile and network in the US, combined with OYO’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity,” stated Gautam Swaroop, CHIEF EXECUTIVE OFFICER OYO International.
Under its possession, Blackstone spent considerable resources to produce worth and improve the Motel 6 brand name, consisting of carrying out an approach to change business right into a prominent property light lodging business with a franchise business network of near 1,500 resorts throughout the United States and Canada.
Julie Arrowsmith, Chief Executive Officer at G6 Hospitality stated, “OYO’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travellers have trusted for over six decades.” Rob Harper, Head of Blackstone Real Estate Asset Management Americas, stated, this deal is an excellent end result for capitalists and is the end result of an enthusiastic company strategy that greater than tripled capitalists’ resources and produced over USD 1 billion in revenue over the hold duration.
Goldman Sachs & &Co LLC served as Blackstone’s lead expert and Jones Lang LaSalle Securities, LLC and PJT Partners served as economic consultants. Simpson Thacher & & Bartlett LLP acted as Blackstone’s lawful expert.
In August 2024, Oravel Stays Ltd, the moms and dad business of OYO, elevated Rs 1,457 crore from a consortium of capitalists in the most up to date financing round. The business has actually elevated almost Rs 1,040 crore in the Series G financing round. This complies with an earlier raising of Rs 416.85 crore in the exact same collection and ends the round.
