OYO Expands Global Footprint with USD 525 Mn Acquisition of G6 Hospitality The acquisition adds approximately 1,500 franchised hotels across the US and Canada to OYO's portfolio, positioning the company as a formidable player in the region.
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Global travel tech company OYO has announced the completion of its USD 525 million acquisition of G6 Hospitality, operators of Motel 6 and Studio 6 brands, from Blackstone Real Estate.
This strategic move marks a significant expansion of OYO's global footprint, particularly in North America, and is projected to boost the company's EBITDA to over INR 2,000 crore by FY26.
The acquisition adds approximately 1,500 franchised hotels across the US and Canada to OYO's portfolio, positioning the company as a formidable player in the region. The combined entity is expected to generate a Gross Booking Value (GBV) of approximately USD 3 billion, with G6 Hospitality contributing USD 1.7 billion. Motel 6 is set to deliver an EBITDA of over INR 630 crore in FY25, its first full year under OYO.
In Europe, OYO claims to have already established a strong presence through OYO Vacation Homes (OVH), managing over 184,000 properties. Brands like DanCenter, Belvilla, and Traum-Ferienwohnungen have driven its success, alongside strategic acquisitions such as Direct Booker in Croatia and CheckMyGuest in Paris. These efforts have tripled OYO's European EBITDA since 2019, showcasing its ability to adapt technology and operations across diverse markets.
"This acquisition represents a transformative moment for OYO's global operations. Motel 6 and Studio 6 have a strong brand franchise in the US, and we see immense growth potential and synergies. Our success in Europe gives us a clear roadmap for value creation," said Ankit Tandon, Global CBO and Head of M&A at OYO.
OYO's US operations, launched in 2019, have shown robust growth with a presence in 35 states and around 400 hotels. Post-acquisition, OYO plans to integrate G6 Hospitality's corporate functions into its global operations while retaining its franchise development, support, and safety operations.
Sonal Sinha, appointed as G6 Hospitality's CEO, will lead growth initiatives, targeting the addition of over 150 hotels in 2025. Technological enhancements, led by OYO's 300-member specialist team, aim to elevate guest experience and operational efficiency.
OYO's financial trajectory remains strong, reporting its first-ever profit after tax of INR 229 crore in FY24, followed by INR 132 crore in Q1 FY25. With this acquisition, OYO aims to solidify its position as a leader in the global hospitality market while maintaining its commitment to innovation and excellence.
