Blackstone Real Estate has sold its G6 Hospitality business in a $525m (£394m) deal.
The investor has sold the lodging franchiser and parent company of the Motel 6 and Studo 6 brands to Oravel Stays, the parent company of global travel technology firm Oyo, in an all-cash transaction.
Oyo has been steadily expanding its footprint in the US since its launch in the region in 2019 and currently operates more than 320 hotels across 35 states. The Motel 6 acquisition will add a franchise network of more than 1,500 hotels to Oyo’s portfolio.
Guatam Swaroop, chief executive of Oyo International, said: “This acquisition is a significant milestone for a start-up 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.”
Rob Harper, head of Blackstone Real Estate asset management Americas, added: “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 $1bn 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.”
The deal is expected to close in Q4 2024.
Goldman Sachs, JLL and PJT Partners advised Blackstone on the deal.
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