Oyo’s Strategic Push in Real Estate Business: $525 Million G6 Deal
Oyo, a global hospitality and real estate business, has acquired G6 Hospitality, the parent company of Motel 6 and Studio 6, for $525 million from Blackstone Real Estate. This deal adds approximately 1,500 properties across the US and Canada to Oyo’s portfolio, strengthening its position in the North American market.
Boost to Oyo’s Real Estate Business
The acquisition is expected to significantly enhance Oyo’s financial performance. The company estimates its earnings (Ebitda) will exceed Rs 2,000 crore by FY26. Motel 6 alone is projected to contribute over Rs 630 crore in profits in its first year after integration. Combined, Oyo and G6 Hospitality are expected to generate bookings worth $3 billion annually, with G6 accounting for $1.7 billion.
Why This Acquisition Matters
Oyo sees G6 Hospitality’s well-known brands as a strong addition to its portfolio of properties. Ankit Tandon, Oyo’s global chief business officer, said the deal builds on the company’s earlier success in Europe, where it tripled profits by integrating vacation homes and other real estate assets. The US real estate market offers significant growth opportunities, making this acquisition a key milestone for Oyo.
Expanding Oyo’s Presence in the US
Since launching in the US in 2019, Oyo has expanded to 35 states with 400 properties. With the addition of G6 Hospitality, Oyo now has a stronger foothold in the region, adding to its growing portfolio of homes, hotels, and serviced properties.
Financial Growth and Investments
Oyo recently reported its first-ever profit of Rs 229 crore in the fiscal year ending March 2024, followed by Rs 132 crore in the first quarter of the current fiscal year. Founder Ritesh Agarwal has also invested heavily, purchasing Rs 550 crore worth of shares to boost his stake.
With this acquisition, Oyo continues to strengthen its global real estate business, focusing on homes, properties, and hospitality assets in key markets like North America.
