OYO Completes Acquisition of G6 Hospitality from Blackstone for $525 Million
Deal News | Dec 17, 2024 | Blackstone
In a significant development in the hospitality industry, Oravel Stays, the parent company of OYO, has successfully completed the acquisition of G6 Hospitality from Blackstone Real Estate for $525 million. The acquisition, first announced in September 2024, marks a strategic expansion for OYO, a global travel technology platform that supports small businesses and entrepreneurs by providing full-stack technology products and services. G6 Hospitality, renowned for its leading economy lodging brands, Motel 6 and Studio 6, operates nearly 1,500 locations across the U.S. and Canada. Blackstone Real Estate, a part of the Blackstone Group, is known for its significant global investments in real estate. Goldman Sachs & Co. LLC, along with financial advisors Jones Lang LaSalle Securities, LLC and PJT Partners, represented Blackstone in the deal, while Deutsche Bank and Mizuho Securities advised OYO. The acquisition underscores OYO's commitment to expanding its affordable and easily accessible accommodations across more than 35 countries. The deal is expected to enhance OYO's offerings and market position in the economy lodging sector.
Sectors
- Hospitality
- Real Estate
- Technology
Geography
- United States – The acquired company, G6 Hospitality, operates predominantly in the U.S. and is based in Carrollton, Texas.
- India – OYO, the acquiring company, is part of Oravel Stays, a global firm with Indian roots.
Industry
- Hospitality – The transaction involves OYO, a global travel technology company, and G6 Hospitality, a prominent economy lodging franchisor.
- Real Estate – Blackstone Real Estate, part of Blackstone Group, specializes in global real estate investment and is the seller in this transaction.
- Technology – OYO operates as a global platform utilizing technology to empower its lodging services and streamline operations.
Financials
- $525 million – The acquisition price paid by OYO to acquire G6 Hospitality from Blackstone Real Estate.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OYO (Oravel Stays) | Acquirer | Company | A global travel technology platform offering a variety of hospitality services across 35+ countries. |
| G6 Hospitality | Target Company | Company | An economy lodging franchisor known for Motel 6 and Studio 6 brands with operations in the U.S. and Canada. |
| Blackstone Real Estate | Seller | Company | A part of Blackstone Group, globally recognized for its real estate investments, selling G6 Hospitality. |
| Goldman Sachs & Co. LLC | Lead Advisor to Blackstone | Company | Financial advisor providing guidance to Blackstone on the sale of G6 Hospitality. |
| Jones Lang LaSalle Securities, LLC | Financial Advisor to Blackstone | Company | Advised Blackstone on the financial aspects of the transaction. |
| PJT Partners | Financial Advisor to Blackstone | Company | Provided financial advisory services to Blackstone for the transaction. |
| Simpson Thacher & Bartlett LLP | Legal Advisor to Blackstone | Company | Legal advisory firm assisting Blackstone in the transaction. |
| Deutsche Bank | Advisor to OYO | Company | Provided advisory support to OYO for the acquisition. |
| Mizuho Securities | Advisor to OYO | Company | Participated as an advisor in various capacities to OYO for the acquisition. |