The finances motel chain Motel 6 is being acquired by the dad or mum firm of Oyo, a resort operator primarily based in India.
The New York-based funding agency Blackstone, which owns Motel 6’s dad or mum firm G6 Hospitality, introduced Friday that the deal can be an all-cash transaction price $525 million.
The transaction may also embrace the sale of the Studio 6 motel model, which caters to prospects in search of prolonged stays. The deal is anticipated to shut by the top of the 12 months.
Oyo, which launched in India simply over a decade in the past, has been increasing its footprint within the U.S. over the previous few years. The corporate says it at present operates 320 lodges throughout 35 states and is aiming so as to add 250 extra this 12 months.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO’s worldwide division chief, stated in an announcement.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the personal fairness big says it has closely invested within the model and pursued a technique that transformed the chain right into a franchise.
“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 top of Blackstone Actual Property Asset Administration Americas, stated in an announcement.
Below the deal, Oravel Stays, which owns Oyo, will purchase G6 Hospitality.
