The budget motel chain Motel 6 is being acquired by the parent company of Oyo, a hotel operator based in India.
Blackstone, which owns Motel 6's parent company G6 Hospitality, announced Friday that the deal would be an all-cash transaction worth $525 million.
The deal will also include the sale of the Studio 6 motel brand, which caters to customers seeking extended stays. The deal is expected to close by the end of the year.
Oyo, which launched in India just over a decade ago, has been expanding its footprint in the U.S. over the past few years. The company said it currently operates 320 hotels across 35 states and is aiming to add 250 more this year.
"This acquisition is a significant milestone for a startup company like us to strengthen our international presence," Gautam Swaroop, OYO's international division chief, said in a statement.
Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant said it has heavily invested in the brand and pursued a strategy that converted the chain into a franchise.
"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 $1 billion in profit over our hold period," Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in a statement.
Additionally, under the deal, Oravel Stays, which owns Oyo, will acquire G6 Hospitality.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
