OYO has successfully concluded its $525 million acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, in an all-cash deal.
Finalized on December 23, 2024, this acquisition marks a major milestone in OYO’s global expansion, particularly in the lucrative North American market.
Key Acquisition Details
Transaction Value: $525 million (approximately ₹4,463 crore)
Brands Acquired: G6 Hospitality operates iconic brands such as Motel 6 and Studio 6, adding around 1,500 franchised hotels across the United States and Canada to OYO’s portfolio.
Financial Forecast: This strategic acquisition is projected to significantly boost OYO’s earnings before interest, taxes, depreciation, and amortization (EBITDA), with estimates surpassing ₹2,000 crore by FY26.
Motel 6 alone is expected to contribute more than ₹630 crore to OYO’s EBITDA in its first full year of integration.
Strategic Expansion in North America
The acquisition of G6 Hospitality is a pivotal move for OYO as it seeks to strengthen its presence in the economy lodging sector.
With a combined gross booking value expected to reach $3 billion, G6’s contribution will account for around $1.7 billion.
OYO’s Global Chief Business Officer, Ankit Tandon, emphasized that this acquisition builds on the company’s successful strategies implemented in Europe, which have significantly boosted EBITDA through synergies.
Future Growth Plans for OYO
Looking ahead, OYO plans to add over 150 hotels under the Motel 6 and Studio 6 brands by 2025, with a focus on preserving the unique identities of these legacy brands while integrating them seamlessly into OYO’s global operations.
To lead this integration, OYO has appointed Sonal Sinha as the new CEO of G6 Hospitality.
This acquisition further strengthens OYO’s foothold in the North American market, positioning the company for continued growth as the global hospitality industry recovers post-pandemic.
OYO’s ongoing commitment to expansion across key global markets is evident in this strategic move, which enhances its competitive edge in the hospitality sector.
Conclusion: A Game-Changing Move for OYO’s Global Expansion
With this acquisition, OYO not only strengthens its position in the U.S. and Canada but also solidifies its standing as a leading player in the global hospitality industry.
This move is set to redefine the economy lodging landscape, attracting more travelers and increasing OYO’s market share in the competitive North American hotel market.
As OYO continues to grow, this acquisition marks an exciting chapter in the company’s journey toward becoming a dominant force in the global hospitality sector.
