Blackstone Sells Motel 6 To Oyo In $525M Deal, Adding 1,450 Hotels To Indian Giant's Portfolio

Blackstone, the private equity powerhouse, has agreed to sell Motel 6, the iconic American budget hotel chain, to Oyo, an Indian hotel operator, for $525 million in cash.

The deal, reported by The Wall Street Journal, marks Oyo’s expansion in the U.S. market and the end of Blackstone’s decadelong ownership of the budget lodging brand.

The transaction includes G6 Hospitality, the parent company of Motel 6 and its extended-stay offshoot, Studio 6. With the acquisition, Oyo will add roughly 1,450 hotels across 49 states and five Canadian provinces, boosting its presence in North America.

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Motel 6, founded in 1962 in Santa Barbara, California, has been a fixture of American road trips for decades. The chain’s name originated from its affordable original $6-per-night rate. Under Blackstone’s ownership since 2012, the brand has seen much growth and profitability.

Rob Harper, head of Blackstone Real Estate Asset Management Americas, highlighted the success of their investment, saying in a statement that it had “generated over $1 billion in profit” during their ownership period.

Blackstone had initially acquired G6 Hospitality for $1.9 billion.

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For Oyo, which entered the U.S. market in 2019, the acquisition represents a major milestone in its expansion strategy. The company operates over 320 hotels across 35 states and aims to add about 250 more this year. In a statement, Gautam Swaroop, CEO of Oyo International, cited Motel 6’s strong brand recognition, financial profile and network in the U.S.

"This acquisition is a significant milestone for a startup company like us to strengthen our international presence," Swaroop said in the statement. "Motel 6's strong brand recognition, financial profile and network in the U.S. combined with OYO's entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity."

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The India-based hotel operator, describing itself as a startup, has received backing from Masayoshi Son's SoftBank Group. However, its rapid growth has not been without controversy, with some incidents in India raising questions about its business practices.

According to the WSJ report, the deal is expected to close by the end of the year subject to customary closing conditions. Oyo plans to operate Motel 6 as a separate entity, maintaining the brand’s identity while leveraging its extensive network.

The transaction points to the ongoing consolidation in the hotel industry. As budget-conscious travelers continue to seek affordable accommodations, combining Oyo’s technology-driven approach and Motel 6’s established brand could reshape the landscape of economy lodging in North America.

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