Budget motel chain Motel 6 is acquired by the parent company of Oyo, a hotel operator based in India.
New York-based investment firm Blackstone, which owns Motel 6’s parent company G6 Hospitality, announced Friday that the deal would be an all-cash transaction valued at $525 million.
The transaction will also include the sale of the Studio 6 motel brand, which caters to customers looking for longer stays. The deal is expected to be completed by the end of the year.
Launched in India just over a decade ago, Oyo has been expand its footprint in the United States in recent years. The company says it currently operates 320 hotels in 35 states and aims to add 250 more this year.
“This acquisition is an important milestone for a start-up like us to strengthen our international presence,” Gautam Swaroop, OYO’s international division head, said in a statement.
Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has invested heavily in the brand and pursued a strategy that turned the chain into a franchise.
“This transaction is a fantastic result for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in earnings during our holding period,” Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in a statement.
Under the deal, Oravel Stays, which owns Oyo, will acquire G6 Hospitality.