A Motel 6
Fort Worth Star-Telegram|Tribune News Service|Getty Images
The budget plan motel chain Motel 6 is being obtained by the moms and dad firm of Oyo, a resort driver based in India.
The New York- based investment company Blackstone, which has Motel 6’s moms and dad firm G6 Hospitality, introduced Friday that the offer would certainly be an all-cash purchase worth $525 million.
The purchase will certainly likewise consist of the sale of the Studio 6 motel brand name, which satisfies consumers looking for prolonged remains. The offer is anticipated to nearby completion of the year.
Oyo, which released in India simply over a years back, has actually been expanding its footprint in the united state over the previous couple of years. The firm claims it presently runs 320 resorts throughout 35 states and is intending to include 250 extra this year.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO’s global department principal, stated in a declaration.
Blackstone had actually acquired Motel 6 and Studio 6 in 2012 for $1.9 billion. Since after that, the exclusive equity titan claims it has actually greatly bought the brand name and sought a method 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, stated in a declaration.
Under the offer, Oravel Stays, which has Oyo, will certainly obtain G6 Hospitality.
