Oravel Stays Acquires Motel 6 and Studio 6 in a Major $525 Million Deal

In a significant move to expand its global footprint, Oravel Stays, the parent company of OYO, has agreed to acquire G6 Hospitality—the operator of Motel 6 and Studio 6—for $525 million in an all-cash deal. This acquisition, expected to close in late 2024, marks a substantial leap for OYO in the U.S. hospitality market. It comes as the Indian-based travel tech company prepares for its highly anticipated initial public offering (IPO), further solidifying its position as a global hospitality leader.

The acquisition involves a network of approximately 1,500 budget-friendly Motel 6 and Studio 6 properties across the U.S. and Canada. This move strengthens OYO’s existing U.S. operations, where it manages over 320 hotels across 35 states. The company plans to further bolster its presence in the U.S. with an additional 250 hotels by the end of 2024, according to industry reports​.

Motel 6, known for its “We’ll leave the light on for you” slogan and over six decades of operation, has a strong brand presence in the American market. G6 Hospitality’s franchise operations generate about $1.7 billion in gross room revenues annually. OYO intends to enhance this brand with its own technological innovations, focusing on increasing efficiency and revenue through its global distribution network. Gautam Swaroop, CEO of OYO International, expressed excitement about the acquisition, saying, “Motel 6’s strong brand recognition, financial profile, and network in the U.S., 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”​

Blackstone Real Estate, the current owner of G6 Hospitality, praised the transaction as a significant success for its investors. The private equity firm had invested heavily in modernizing the Motel 6 brand, transforming the franchise into an asset-light lodging company with a strong financial base. Julie Arrowsmith, CEO of G6 Hospitality, stated, “OYO’s innovative approach to hospitality will allow us to enhance our offerings while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades”​

This acquisition underscores OYO’s ambitious plans to expand its presence in North America while continuing to bring affordable, quality accommodation to a global audience.