Global Travel Technology Company OYO to Acquire G6 Hospitality from Blackstone Real Estate
OYO, a global travel technology company, has agreed to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million in an all-cash transaction. This acquisition marks a significant milestone for OYO to strengthen its international presence, particularly in the United States. G6 Hospitality's franchise network generates $1.7 billion in gross room revenues, providing a strong fee base and cash flow.
OYO plans to leverage its technology suite, global distribution network, and marketing expertise to further strengthen the Motel 6 and Studio 6 brands. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. Under Blackstone's ownership, G6 Hospitality transformed into a leading asset-light lodging company with a franchise network of ~1500 hotels across the US and Canada.
OYO, un'azienda globale di tecnologia per i viaggi, ha concordato di acquisire G6 Hospitality, la società madre dei marchi Motel 6 e Studio 6, da Blackstone Real Estate per 525 milioni di dollari in un'operazione interamente in contanti. Questa acquisizione rappresenta un traguardo significativo per OYO per rafforzare la propria presenza internazionale, in particolare negli Stati Uniti. La rete di franchising di G6 Hospitality genera 1,7 miliardi di dollari in ricavi lordi delle camere, fornendo una solida base di commissione e flusso di cassa.
OYO prevede di sfruttare la propria suite tecnologica, la rete di distribuzione globale e l'esperienza di marketing per rafforzare ulteriormente i marchi Motel 6 e Studio 6. Si prevede che l'operazione si chiuda nel quarto trimestre del 2024, soggetto a condizioni di chiusura consuete. Sotto la proprietà di Blackstone, G6 Hospitality si è trasformata in un'importante azienda di alloggi a basso costo, con una rete di franchising di circa 1500 hotel negli Stati Uniti e in Canada.
OYO, una empresa global de tecnología de viajes, ha acordado adquirir G6 Hospitality, la empresa matriz de las marcas Motel 6 y Studio 6, de Blackstone Real Estate por 525 millones de dólares en una transacción completamente en efectivo. Esta adquisición marca un hito significativo para OYO para fortalecer su presencia internacional, especialmente en los Estados Unidos. La red de franquicias de G6 Hospitality genera 1.7 mil millones de dólares en ingresos brutos por habitación, proporcionando una sólida base de comisiones y flujo de caja.
OYO planea aprovechar su conjunto de tecnologías, red de distribución global y experiencia en marketing para fortalecer aún más las marcas Motel 6 y Studio 6. Se espera que la transacción cierre en el cuarto trimestre de 2024, sujeta a las condiciones de cierre habituales. Bajo la propiedad de Blackstone, G6 Hospitality se transformó en una importante compañía de hospedaje ligera con una red de franquicias de alrededor de 1500 hoteles en EE. UU. y Canadá.
OYO는 글로벌 여행 기술 회사로서 Motel 6와 Studio 6 브랜드의 모회사인 G6 Hospitality를 Blackstone Real Estate로부터 5억 2천5백만 달러에 현금으로 인수하기로 합의했습니다. 이 인수는 OYO가 특히 미국에서 국제적 존재감을 강화하는 중요한 이정표가 됩니다. G6 Hospitality의 프랜차이즈 네트워크는 17억 달러의 총 객실 수익을 창출하여, 견고한 수수료 기반과 현금 흐름을 제공합니다.
OYO는 턴키 기술 suite, 글로벌 유통망, 마케팅 전문성을 활용하여 Motel 6와 Studio 6 브랜드를 더욱 강화할 계획입니다. 이 거래는 2024년 4분기에 마무리될 것으로 예상되며, 일반적인 마감 조건에 따라 결정됩니다. Blackstone 소유 하에 G6 Hospitality는 미국과 캐나다에 약 1500개 호텔의 프랜차이즈 네트워크를 가진 선도적인 경량 숙박 회사로 변모했습니다.
OYO, une entreprise mondiale de technologie de voyage, a convenu d'acquérir G6 Hospitality, la société mère des marques Motel 6 et Studio 6, de Blackstone Real Estate pour 525 millions de dollars dans le cadre d'une transaction entièrement en espèces. Cette acquisition marque une étape significative pour OYO afin de renforcer sa présence internationale, notamment aux États-Unis. Le réseau de franchises de G6 Hospitality génère 1,7 milliard de dollars de revenus bruts d'hébergement, offrant une base solide de frais et de flux de trésorerie.
OYO prévoit de tirer parti de son ensemble technologique, de son réseau de distribution mondial et de son expertise en marketing pour renforcer encore les marques Motel 6 et Studio 6. La transaction devrait être finalisée au quatrième trimestre 2024, sous réserve des conditions de clôture habituelles. Sous la propriété de Blackstone, G6 Hospitality s'est transformée en une entreprise d'hébergement légère de premier plan, avec un réseau de franchises de près de 1500 hôtels aux États-Unis et au Canada.
OYO, ein globales Reise-Technologieunternehmen, hat vereinbart, G6 Hospitality, die Muttergesellschaft der Marken Motel 6 und Studio 6, von Blackstone Real Estate für 525 Millionen Dollar in einer Barzahlungstransaktion zu erwerben. Diese Übernahme stellt einen bedeutenden Meilenstein für OYO dar, um die internationale Präsenz, insbesondere in den Vereinigten Staaten, zu stärken. Das Franchise-Netzwerk von G6 Hospitality generiert 1,7 Milliarden Dollar an Bruttozimmereinnahmen, wodurch eine solide Gebührenbasis und ein Cashflow geschaffen werden.
OYO plant, seine Technologielösungen, sein globales Vertriebsnetz und seine Marketingexpertise zu nutzen, um die Marken Motel 6 und Studio 6 weiter zu stärken. Es wird erwartet, dass die Transaktion im vierten Quartal 2024 abgeschlossen wird, vorbehaltlich üblicher Abschlussbedingungen. Unter Blackstones Eigentum hat sich G6 Hospitality in ein führendes, asset-light Unterkunftsunternehmen mit einem Franchise-Netzwerk von ca. 1500 Hotels in den USA und Kanada verwandelt.
- Acquisition of G6 Hospitality for $525 million, expanding OYO's presence in the US market
- G6 Hospitality's franchise network generates $1.7 billion in gross room revenues
- OYO to leverage its technology and expertise to strengthen Motel 6 and Studio 6 brands
- Expansion of OYO's portfolio with ~1500 hotels across the US and Canada
- Significant cash outlay of $525 million for the acquisition
- Potential integration challenges and costs associated with merging two large hospitality companies
- Execution risk in leveraging OYO's technology and expertise to improve G6 Hospitality's performance
Insights
The $525 million acquisition of G6 Hospitality by OYO is a significant move in the budget hospitality sector. This deal gives OYO access to Motel 6's strong brand recognition and a vast network of ~1500 hotels across the US and Canada. The
This acquisition marks a significant shift in the US economy lodging landscape. OYO's tech-driven approach combined with Motel 6's established brand could disrupt the market. The deal may trigger consolidation among other players to remain competitive. OYO's plan to add ~250 hotels in 2024 shows aggressive growth intentions, which could pressure smaller chains. The transaction also highlights the attractiveness of the budget segment in the US hospitality market, especially post-pandemic. Blackstone's successful exit, having tripled investors' capital and generated
The acquisition's regulatory approval process will be important to watch. Given the size and impact of the deal, it may face scrutiny from antitrust authorities. The all-cash transaction structure simplifies the deal but raises questions about OYO's financing arrangements. The expected closing in Q4 2024 suggests a lengthy due diligence and regulatory review process. Key legal considerations include franchise agreements, intellectual property rights transfer and potential liabilities inherited from G6 Hospitality. OYO must ensure compliance with US franchise laws and regulations, which differ significantly from its home market. The involvement of high-profile advisors like Goldman Sachs and Simpson Thacher & Bartlett indicates the complex nature of this cross-border transaction.
OYO has steadily expanded its footprint in
"This acquisition is a significant milestone for a startup company like us to strengthen our international presence. Motel 6's strong brand recognition, financial profile and network in the US, combined with OYO's entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity," said Gautam Swaroop, CEO OYO International.
Under its ownership, Blackstone invested significant capital to create value and enhance the Motel 6 brand, including executing a strategy to transform the business into a leading asset light lodging company with a franchise network of ~1500 hotels across
Julie Arrowsmith, President and Chief Executive Officer at G6 Hospitality, said, “We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter. OYO's innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades.”
Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said, "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
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Goldman Sachs & Co. LLC acted as Blackstone’s lead advisor and Jones Lang LaSalle Securities, LLC and PJT Partners acted as financial advisors. Simpson Thacher & Bartlett LLP served as Blackstone’s legal advisor.
About OYO
OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 175K hotel and home storefronts in more than 35 countries including
About G6 Hospitality LLC
G6 Hospitality LLC is a leading economy lodging franchisor, with nearly 1,500 economy lodging locations under the iconic Motel 6 brand and the Studio 6 Extended Stay brand in
About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has US
View source version on businesswire.com: https://www.businesswire.com/news/home/20240920634099/en/
OYO
Anupriya Malik
Anupriya.d@oyorooms.com
G6 Hospitality
Maggie Giddens
Giddens_Maggie@g6hospitality.com
Blackstone
Jeffrey Kauth
Jeffrey.Kauth@Blackstone.com
Source: Blackstone Real Estate
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