Oravel Stays, the moms and dad firm of the worldwide traveling modern technology firm OYO, has actually accepted obtain G6 Hospitality, from Blackstone Real Estate for $525 million in an all-cash deal.
G6 Hospitality is the leading economic situation accommodations franchisor and moms and dad firm of the famous Motel 6 and Studio 6 brand names.
OYO has actually broadened its impact in the United States considering that its launch in the area in 2019 and presently runs over 320 resorts throughout 35 states. In 2023, OYO included almost 100 resorts to its United States profile and intends to include 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,” claimed Gautam Swaroop, CHIEF EXECUTIVE OFFICER OYOInternational
Motel 6’s franchise business network creates gross space incomes of $1.7 billion, which creates a solid charge base and capital for G6. OYO will certainly utilize its detailed modern technology collection in addition to its worldwide circulation network and advertising knowledge to more reinforce the Motel 6 and Studio 6 brand names and drive proceeded economic development.
Under its possession, Blackstone spent considerable resources to produce worth and boost the Motel 6 brand name, consisting of implementing a technique to change business right into a top possession light lodging firm with a franchise business network of 1,500 resorts throughout the United States andCanada
Julie Arrowsmith, President and CHIEF EXECUTIVE OFFICER at G6 Hospitality, claimed, “We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter. 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.”
The deal is anticipated to enclose the 4th quarter of 2024, based on normal closing problems.
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, claimed, “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. We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.”
Goldman Sachs & &Co LLC functioned as Blackstone’s lead consultant and Jones Lang LaSalle Securities, LLC and PJT Partners functioned as economic experts. Simpson Thacher & & Bartlett LLP functioned as Blackstone’s lawful consultant.
