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One among India’s largest startups, finances resort firm Oyo, has reached a deal to accumulate G6 Hospitality, which operates Motel 6.
Oyo says it’s going to pay Blackstone Actual Property $525 million in an all-cash transaction. The acquisition additionally contains the Studio 6 prolonged keep model and is predicted to shut within the fourth quarter of this yr.
The Indian startup opened its first U.S. location in 2019 and now operates greater than 320 motels throughout 35 states. Oyo is dramatically increasing its North American footprint by buying Motel 6 — arguably the best-known finances motel model within the nation, with a franchise community of round 1,500 areas in america and Canada.
“This acquisition is a big milestone for a startup firm like us to strengthen our worldwide presence,” stated Oyo Worldwide CEO Gautum Swaroop in a press release. He added that Motel 6 will “proceed to function as a separate entity.”
Based in 2012, SoftBank-backed Oyo’s was valued at $10 billion in 2019, however has struggled lately on account of pandemic-related challenges, in addition to criticism over practices resembling providing rooms from unavailable or unlicensed motels.
Over the summer time, TechCrunch reported on a brand new funding spherical that noticed the corporate’s valuation fall to $2.5 billion — lower than its complete capital raised. (Oyo has denied reporting about its lowered valuation.)
Motel 6, in the meantime, was based in 1962. It popularized the finances motel idea (rooms initially price $6 an evening) and was finally acquired by Blackstone for $1.9 billion in 2012.
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