One in all India’s largest startups, finances lodge firm Oyo, has reached a deal to amass G6 Hospitality, which operates Motel 6.
Oyo says it would pay Blackstone Actual Property $525 million in an all-cash transaction. The acquisition additionally consists of the Studio 6 prolonged keep model and is predicted to shut within the fourth quarter of this 12 months.
The Indian startup opened its first U.S. location in 2019 and now operates greater than 320 resorts throughout 35 states. Oyo is dramatically increasing its North American footprint by buying Motel 6 — arguably the best-known finances lodge 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,” mentioned Oyo Worldwide CEO Gautum Swaroop in an announcement. 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 resulting from pandemic-related challenges, in addition to criticism over practices resembling providing rooms from unavailable or unlicensed resorts.
Over the summer season, TechCrunch reported on a brand new funding spherical that noticed the corporate’s valuation fall to $2.5 billion — lower than its whole capital raised. (Oyo has denied reporting about its lowered valuation.)
Motel 6, in the meantime, was based in 1962. It popularized the finances lodge idea (rooms initially price $6 an evening) and was ultimately acquired by Blackstone for $1.9 billion in 2012.
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