Motel 6 Acquired by Oyo for $525 Million. In September 2024, Oyo, the Indian hotel operator, made a significant move by purchasing Motel 6, one of America’s most recognized budget motel chains, for $525 million. This deal also includes the Studio 6 brand, which specializes in extended stays. Oyo’s acquisition comes at a pivotal moment in its international expansion, with the company already managing over 320 hotels across 35 U.S. states. This purchase marks a major milestone for Oyo, helping it establish a deeper foothold in the American hospitality market.
The seller in this transaction, Blackstone, one of the largest private equity firms globally, had acquired Motel 6 and Studio 6 in 2012 for $1.9 billion. During Blackstone’s ownership, the company heavily invested in upgrading Motel 6 and franchising the brand across the country. Blackstone’s strategy successfully increased its investors’ returns, tripling capital and generating over $1 billion in profit.
Motel 6 Acquired by Oyo for $525 Million.
The decision to sell Motel 6 is seen as the culmination of Blackstone’s long-term plan to grow and eventually exit the investment at a profit. By selling to Oyo, Blackstone has secured a high-value deal, marking a substantial exit from the U.S. budget hotel market.
For Oyo, this acquisition strengthens its ambition to become a dominant player in the U.S. hospitality industry. Founded in 2013, Oyo started in India and rapidly expanded worldwide, driven by its tech-forward approach to hotel management and guest services. The company now has a presence in multiple countries, including major markets like the U.K., Japan, and China.
Before the Motel 6 deal, Oyo already operated 320 hotels across 35 U.S. states and planned to add another 250 properties to its portfolio in 2024. This acquisition helps Oyo fast-track its expansion plans and strengthens its international presence.
Motel 6, known for its affordable lodging and consistent quality, has become a staple for budget-conscious travelers across the United States. The Studio 6 brand, catering to customers seeking longer-term accommodations, offers additional growth opportunities for Oyo in the extended-stay market. The deal between Oyo and Blackstone reflects Motel 6’s appeal as an established, well-recognized brand that still holds potential for further growth.
The acquisition of Motel 6 signals a broader trend of consolidation within the hotel industry, especially in the U.S. budget segment. Oyo’s ability to modernize its offerings with technology, combined with Motel 6’s established brand, could lead to shifts in how budget hotels operate. This merger is also a reflection of growing foreign investment in the U.S. hospitality sector.
Oyo’s expansion through this acquisition could push other budget hotel chains to innovate and stay competitive. The company’s strategy of leveraging technology to enhance customer experience and streamline hotel management has the potential to disrupt traditional hospitality practices in the budget sector.
The Motel 6 acquisition is a defining moment for Oyo, allowing the company to solidify its presence in one of the world’s largest and most competitive hospitality markets. With the sale expected to close by the end of 2024, this deal is likely to set the stage for further expansion, innovation, and competition in the U.S. budget lodging industry. The combination of Oyo’s technological expertise and Motel 6’s brand recognition may lead to a new chapter for budget-conscious travelers in America.
