Travel tech company Oyo on Monday said it has completed the acquisition of US-based G6 Hospitality from Blackstone for $525 million. The all-cash deal was initially announced in September.
G6 Hospitality is an economy lodging franchisor and the parent company of Motel 6 and Studio 6 brands. With this acquisition, Oyo will get around 1,500 franchised hotels across the USA and Canada.
The acquisition has also prompted organisational changes at G6 Hospitality. Recently, they have appointed Sonal Sinha appointed as CEO. She was earlier the US head of Oyo.
“This acquisition represents a transformative moment for Oyo’s global operations,” said Ankit Tandon, global CBO and head of M&A, Oyo. “We could see this will be a value accretive acquisition due to their strong brand franchise in US, potential for growth and synergies.”
The development comes at a time when Oyo has been rapidly increasing its footprint abroad, including in the USA. Earlier this month, it was announced that Oyo founder and CEO Ritesh Agarwal may personally invest Rs 550 crore into the company as it looks to expand globally.
The firm launched its operations in the USA in 2019 and currently operates over 300 hotels there.
“The US is an attractive market for us and this acquisition will provide a strong growth impetus,” said Rakesh Prusti, group general counsel, OYO.
Oyo has also expanded its European presence through strategic acquisitions under Oyo Vacation Homes (OVH). OVH’s brands include Belvilla, which manages 65,000 holiday homes across 20 countries, and Traum-Ferienwohnungen, an online vacation rental platform with 100,000 homes.
It has over 184,000 properties across Europe, the US, the UK, Southeast Asia, and West Asia.
The online hotels and hospitality services provider company said the G6 Hospitality deal is expected to increase Oyo’s Ebitda to over Rs 2,000 crore in the upcoming financial year, 2025-26.
The combined entity is projected to generate a gross booking value of $3 billion, with G6 Hospitality contributing $1.7 billion.
OYO, which has delayed its IPO plans several times in the past, has been working on its profitability. In 2023-24, it reported its first-ever profit after tax of around Rs 229 crore. In Q1FY25, it reported a profit of Rs 132 crore.