OYO to Buy Motel 6 from Blackstone for $525 Million
Photo Credit: Exterior of a Motel 6 in Allentown, PA. G6 Hospitality
Skift Take
OYO is acquiring G6 Hospitality from Blackstone for $525 million, adding 1,500 U.S. and Canadian locations while keeping Motel 6 and Studio 6 brands independent.
The DJIA Friday with a gain of 38 points while Nasdaq was down 66, the S&P 500 fell 11 points, and the 10-year treasury yield was down .01 to 3.73%. INN traded up to a new high, SOHO was up 6% but VCSA fell -7% on the day.
The big news came late Friday as Oravel Stays, the parent company of OYO, announced it agreed to acquire G6 Hospitality from Blackstone Real Estate for $525 million in cash. OYO will keep the Motel 6 and Studio 6 brands independent from OYO hotels. With the acquisition, OYO adds about 1,500 locations across the U.S. and Canada, assuming they keep them all. Motel 6's franchise network generated gross room revenues of $1.7 billion a year. For Blackstone, they exit this after holding onto G6 for longer than is typical. They purchased it in 2012 for $1.9 billion from Accor. Blackstone sold off the hotels, converting them to a franchise model. That is a sale of more than 550 properties. Blackstone said the transaction is a terr
