Oyo completes $525-million G6 Hospitality acquisition

Softbank-backed hospitality startup Oyo has completed its acquisition of G6 Hospitality, which operates lodging franchisor brands Motel 6 and Studio 6, from Blackstone Real Estate for $525 million (Rs 4,463 crore) in an all-cash transaction, the company said.

This comes after the Gurugram-based company posted its first-ever profit after tax of approximately Rs 229 crore in FY24, followed by a profit of Rs 132 crore in Q1 FY25, as per reports.

The deal is expected to increase Oyo's earnings before interest, taxes, depreciation and amortisation (Ebitda) to over Rs 2,000 crore in FY26. Motel 6 is projected to contribute an Ebitda of over Rs 630 crore in the coming financial year, the first full year of its integration, according to the company.

“We see this as a value-accretive acquisition due to their strong brand franchise in the US, potential for growth, and synergies. Our success in Europe, where we nearly tripled Ebitda through strategic synergies for our vacation homes business, has provided us with a clear roadmap for value creation,” said Ankit Tandon, global chief business officer and head of mergers and acquisitions, Oyo.

The hospitality major is targeting the addition of over 150 hotels in 2025 under the Motel 6 and Studio 6 brands. The acquisition adds approximately 1,500 franchised hotels across the US and Canada to the Ritesh Agarwal-led company, expanding its North American presence. Oyo has also expanded its European presence through strategic acquisitions under the Oyo Vacation Homes (OVH) brand.

The company manages over 1,84,000 properties across Europe, the US, the United Kingdom (UK), Southeast Asia, and West Asia. Its portfolio includes the vacation home management company DanCentre, which oversees 12,000 properties in Denmark, Sweden, Norway, and Germany.