Indian Hotel Giant Intensifies U.S. Expansion: Oyo Purchases Motel 6 Parent Company from Blackstone for $525M

Motel 6, the economy budget motel chain that traces its roots back to 1962 Santa Barbara, CA, will still leave the light on for you, albeit under new ownership. Blackstone Inc. agreed to sell G6 Hospitality, the umbrella company behind Motel 6 and Studio 6 Extended Stay, to Indian hospitality technology firm Oravel Stays, Oyo’s parent company. Founded in 2013, Oravel Stays first expanded Oyo hotel operations into the U.S. in 2019. The Indian company currently runs over 320 hotels across 35 states and operates over 157,000 hotels and homes in 35 countries, adding roughly 100 additional hotels to its U.S. portfolio last year. This acquisition comes as Oyo seeks to gain additional traction and ramp up its hotel operations in the U.S and internationally. In a press release on 9/20, Oravel Stays said that it came to terms with Blackstone Real Estate to purchase the budget lodging chain for $525 million in cash. “This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, CEO of Oyo International said in the press release. “Motel 6’s strong brand recognition, financial profile and network in the US, combined with Oyo’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company.”

Blackstone, a New York-based company, purchased the motel chain from French multinational hospitality company Accor in 2012 for $1.9 billion. Blackstone’s sale of Motel 6 and Studio 6 comes as the U.S. hotel industry continues to recover post-pandemic, as federal data shows that in 2024, almost 200,000 fewer people work in hotels and other lodging than before the pandemic. The U.S. economy hotel sector also faces flat-lining occupancy and stagnant room rates. However, hospitality industry experts predict that the outlook will improve in 2025. G6 Hospitality runs nearly 1,500 economy lodging locations under the iconic Motel 6 and Studio 6 Extended Stay brands in the United States and Canada. The transaction to acquire these budget hotel chains will be done entirely in cash and is expected to close in the fourth quarter of this year. Motel 6 will continue to operate as a separate entity.