Motel 6 sold to Indian hotel operator for $525 million

Budget motel chain Motel 6 is being acquired by the parent company of Oyo, a hotel chain based in India.

New York-based investment firm Blackstone, owner of Motel 6’s parent company G6 Hospitality, announced Friday that the deal would be an all-cash transaction valued at $525 million.

The transaction also includes the sale of the Studio 6 motel brand, which caters to customers looking for extended stays. The deal is expected to close by the end of this year.

Oyo, which launched in India a little over a decade ago, is expanding its footprint in the U.S. in recent years. The company says it currently operates 320 hotels in 35 states and plans to add 250 hotels this year.

“This acquisition is a significant milestone for a start-up like ours to strengthen our international presence,” Gautam Swaroop, head of OYO’s international division, said in a statement.

Blackstone acquired Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has invested heavily in the brand and pursued a strategy that has transformed the chain into a franchise.

“This transaction is a great outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated more than $1 billion in returns during our holding period,” Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in a statement.

Under the deal, Oravel Stays, owner of Oyo, will acquire G6 Hospitality.