Hospitality chain OYO on Monday announced that it has completed the acquisition of Motel 6’s parent company, and expects the deal to boost its earnings before interest, tax, depreciation, and amortization (EBITDA) to over Rs 2,000 crore in FY26.
OYO acquired G6 Hospitality, operator of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million in September this year. This will add about 1,500 franchised hotels across the US and Canada to OYO’s portfolio, contributing $1.7 billion in gross booking value.
The deal is expected to add over Rs 630 crore to EBITDA in the next financial year, which will be its first full year of integration. The company will retain its franchise operations while integrating corporate functions with OYO’s global teams. OYO aims to expand G6’s Motel 6 and Studio 6 brands by adding over 150 hotels by 2025 and has appointed Sonal Sinha as CEO of G6 Hospitality.
“They (Blackstone Real Estate) have kept the core business competencies intact and set us up for success.
Strategic investors are coming. The US is an attractive market for us and this acquisition will drive strong growth,” noted Rakesh Prashti, Group General Counsel, OYO.
OYO has significantly strengthened its presence in Europe through a series of strategic acquisitions under its OYO Vacation Homes (OVH) division.
OVH-owned DanCenter, which manages 12,000 properties in Denmark, Sweden, Norway and Germany, has doubled its revenue and market presence since its 2019 acquisition.
OVH’s portfolio also includes Belvilla, managing 65,000 holiday homes in 20 countries, and Traum-Ferienwohnungen, an online holiday rental platform. In 2022, OYO acquired Croatian company Direct Booker, and also added Paris-based CheckMyGuest, a premium vacation rental company.
The Ritesh Aggarwal-led company posted a first-time profit of Rs 229 crore in FY24, followed by Rs 132 crore in Q1 FY25.