Oyo completes G6 Hospitality acquisition from Blackstone Real Estate for $525 million

Hospitality firm Oyo has completed the acquisition of the US-based lodging franchisor G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million, adding approximately 1,500 franchised hotels across the US and Canada to its portfolio.

Oyo had announced its plans to acquire G6 Hospitality on September 20.

The acquisition is expected to boost the hospitality major’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) to over Rs 2,000 crore in FY26, Oyo said in a statement on Monday.


Motel 6 alone is projected to contribute over Rs 630 crore to its Ebitda in the first full year following integration, it said.

The combined entity is expected to generate a gross booking value of approximately $3 billion, with G6 Hospitality accounting for $1.7 billion of that.

“We could see this will be a value accretive acquisition due to their strong brand franchise in the US, potential for growth and synergies,” said Ankit Tandon, global chief business officer and head of mergers and acquisitions (M&A) at Oyo. “Our success in Europe, where we nearly tripled Ebitda through strategic synergies for our vacation homes business, has given us a clear roadmap for value creation,” he added.

On November 18, ET had reported that Oyo’s founder Ritesh Agarwal is planning to buy Rs 550-crore worth of shares to increase his stake in the company.

The unicorn’s $175-million funding round earlier this year was led by Agarwal, who invested $100 million. Other participants included family offices and private investors such as InCred Wealth, J&A Partners of Mankind Pharma promoters, ASK Financial Holdings, and investor Ashish Kacholia. This round valued Oyo at about $2.5 billion, as reported by ET in June.

The company’s valuation currently stands at $4.6 billion after Nuvama Wealth and Investment Limited acquired shares worth Rs 100 crore in its parent, Oravel Stays, at Rs 53 per share through a secondary transaction, as reported by ET on December 15. This is around 49% lower than the Softbank Group-backed company’s peak valuation of $9 billion in 2021.

The G6 Hospitality acquisition comes at a time when Oyo’s US operations have been showing growth. Since its 2019 launch in the region, Oyo has established a presence across 35 states with around 400 hotels.

"Blackstone has been a great investor for G6 Hospitality. They kept the core business competencies intact and have set us up for success as strategic investors coming in. The US is an attractive market for us and this acquisition will provide a strong growth impetus," said Rakesh Prusti, group general counsel at Oyo.

Oyo reported its first-ever profit after tax of approximately Rs 229 crore in the fiscal year ended March 2024, followed by a profit of Rs 132 crore in the first quarter of the current fiscal year.

During a town hall in August, Agarwal attributed the company’s “strong performance” to its expansion across key markets, including India, Southeast Asia, and the US, as well as the growth of company-serviced properties and strategic investments in Europe.