Firm Drives OYO’s All-Cash $525M Purchase of Motel 6

September 2024 – Hughes Hubbard is advising Indian hotel giant OYO on its $525 million acquisition of G6 Hospitality, the parent company of iconic U.S. hospitality brand Motel 6.

The all-cash deal was announced on Sept. 20 and is expected to close by the end of the year. The acquisition, which also includes G6’s Studio 6 brand, is part of OYO’s plan to expand its footprint in the U.S., where it currently operates 320 hotels across 35 states.

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” said Gautam Swaroop, OYO’s international division chief, in a statement.

In 2012, private equity firm Blackstone purchased Motel 6 and Studio 6 from Accor Hotels for $1.9 billion. The combined franchises now bring in approximately $1.7 billion per year.

“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in a statement.

The deal was reported on by The Wall Street Journal, The New York Times, Forbes and AP News.

Headquartered in Gurgaon, India, OYO is a multinational hospitality chain of leased and franchised hotels, homes and other living spaces. Beginning in 2012 as a website for finding and booking budget accommodations, OYO now owns more than 43,000 properties and one million rooms across 80 countries.

Founded in 1962 in Santa Barbara, Calif., Motel 6 is a chain of motels with 1,430 locations across the U.S. and Canada. In 1999, Motel 6 launched Studio 6, hotels with suites designed longer stays.

Chuck Samuelson led the HHR team with primary assistance from Jason Lee. Other members of the team included Ken Lefkowitz, Bill Beausoleil, Andy Braiterman, Philip Giordano, Steve Greene, Charlie Wachsstock, Dan Weiner, Kristin Millay, Sean Reilly, Sabrina Silverberg, Tom Koziel and Alexis Rosett.