2024-09-21 01:05:09
Acquired for $525 million, Motel 6 has gained a strong reputation in the United States thanks to its large regional network, with more than 1,450 hotels in North America.
India’s OYO will buy the American chain of small hotels Motel 6, sold by its current owner, private equity firm Blackstone, for $525 million. Founded in 1962 in California, Motel 6 has gained a strong reputation in the United States thanks to its large regional network, with more than 1,450 hotels in North America. It is named after the starting rate of a room, which is 6 dollars. Its image is associated with that of major car tours in the country, many of its establishments are on the road.
The group was acquired in 1990 by the French Accor, for 1.3 billion dollars, before it passed into the hands of Blackstone in 2012 for 1.9 billion. The private equity firm changed the model of Hotel 6, which initially managed most of its properties. It sold hotel properties to go into the franchise system, generating significant cash flows, which explains the low sales price compared to the price paid by Blackstone. As Rob Harper, head of real estate assets in the United States, pointed out in a press release published on Friday, the group received total “more than a billion dollars” since the takeover of Hotel 6, the house is owned by a house called G6 Hospitality.
Founded in 2012, OYO operates its own hotels but also manages a room booking platform which includes offers from other establishments. The New Delhi group was launched in the United States only in 2019 but today manages 320 hotels in 35 states. Oravel Duro, the parent company of OYO, and Blackstone plan to complete the transaction in the fourth quarter.
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