Oyo buys US-based G6 Hospitality from Blackstone for $525 mn, adds 1,500 hotels

Bengaluru: Ritesh Agarwal-led Oyo has completed the acquisition of US-based G6 Hospitality, which operates the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million and the deal is projected to increase its Ebitda to over ₹2,000 crore in FY26, the travel-tech startup said in a statement on Monday.

Ebitda stands for earnings before interest, taxes, depreciation, and amortization, and is a key measure of a company’s profitability.

Motel 6 is expected to contribute an Ebitda of over ₹630 crore in the coming financial year starting April, which will be the first full year of its integration, the company said. For context, Oyo posted an adjusted Ebitda of ₹877 crore in FY24.

The transaction is expected to add about 1,500 franchised hotels across the US and Canada to Oyo’s portfolio, which will significantly expand its North American presence. Upon integration, the combined entity is projected to generate a gross booking value of approximately $3 billion, with G6 Hospitality contributing $1.7 billion to this.

“This acquisition represents a transformative moment for Oyo’s global operations. We could see this will be a value-accretive acquisition due to their strong brand franchise in the US, potential for growth and synergies,” said Ankit Tandon, global chief business officer & head of mergers and acquisitions, Oyo.

Sonal Sinha has been appointed as the CEO of G6 Hospitality, and Oyo plans to add over 150 hotels through the next year under the Motel 6 and Studio 6 brands. The deal comes at a time when Oyo’s US operations have shown robust growth, the company said. It claims to have presence across 35 states with about 400 hotels in the region.

Oyo’s presence

With over 184,000 properties, Oyo also has presence across Europe, the UK, Southeast Asia and the Middle East. Europe is one of its key markets, where the Gurugram-based company has expanded its presence through strategic acquisitions under OYO Vacation Homes (OVH). Oyo’s Tandon claimed that the company nearly tripled its Ebitda in its vacation home business in Europe.

Its other portfolio companies include DanCenter, a vacation home management company, which handles 12,000 properties across Denmark, Sweden, Norway, and Germany, and Belvilla, which has 65,000 holiday homes across 20 countries, and Traum-Ferienwohnungen, an online vacation rental platform with 100,000 homes.

Oyo acquired Direct Booker in Croatia (3,200 homes) in 2022, and most recently, CheckMyGuest, a premium vacation rental company based in Paris, further bolstering its European presence. In FY24, Oyo reported its first-ever profit of ₹229 crore, from a loss of ₹1,286 crore a year earlier. In the first quarter of FY25, it reported a profit of ₹132 crore.