OYO completes acquisition of US-based G6 Hospitality for USD 525 million
OYO has completed its acquisition of Motel 6 and Studio 6 brands, from Blackstone Real Estate for USD 525 million, marking a significant milestone in expanding the company's global footprint, the online hotels and hospitality services provider company said on Monday.
ANI
Dec 23, 2024 13:54 IST
New Delhi [India], December 23 (ANI): OYO has completed its acquisition of Motel 6 and Studio 6 brands, from Blackstone Real Estate for USD 525 million, marking a significant milestone in expanding the company's global footprint, the online hotels and hospitality services provider company said on Monday.
On September 20, OYO agreed to acquire US-based G6 Hospitality, the parent company of the Motel 6 and Studio 6 brands, in an all-cash transaction.
As per a statement from OYO on Monday, the deal is projected to increase OYO's EBITDA to over Rs 2,000 crore in the upcoming financial year - 2025-26. Motel 6 is expected to contribute an EBITDA of over Rs 630 crore in the coming financial year.
The acquisition adds approximately 1,500 franchised hotels across the US and Canada to OYO's portfolio, expanding its North American presence, it added.
The combined entity is projected to generate a gross booking value of approximately USD 3 billion, with G6 Hospitality contributing USD 1.7 billion to this, as per the OYO statement.
OYO has steadily expanded its footprint in the US since its launch in the region in 2019.
"This acquisition represents a transformative moment for OYO's global operations. We could see this will be a value accretive acquisition due to their strong brand franchise in US, potential for growth and synergies. Through the acquisition process and the conclusion, that belief is further strengthened," said Ankit Tandon, Global CBO and Head of M&A, OYO.
OYO's financial trajectory has been notably strong, with the company reporting its first-ever profit after tax of approximately Rs 229 crore in 2023-24, followed by a profit of Rs 132 crore in Q1 2024-25.
"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, OYO. (ANI)
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