OYO has agreed to acquire G6 Hospitality, the operator of Motel 6 and Studio 6, for $525 million in an all-cash transaction. This acquisition will transfer ownership of the US-based firm from Blackstone Real Estate to OYO, with the deal expected to close by the end of 2024, according to a press release.

Blackstone previously acquired the Motel 6 and Studio 6 brands from French hotel company Accor in a $1.9 billion deal in 2012. Motel 6 currently operates over 1,450 hotels in the US and Canada, while Studio 6 has more than 200 properties. The Motel 6 franchise network generates $1.7 billion in annual gross room revenue. In 2023, OYO added nearly 100 properties in the US and plans to add another 250 by year-end.

This acquisition marks OYO’s second significant purchase recently, following last month's acquisition of Paris-based Checkmyguest for over $27 million. It comes shortly after OYO’s $175 million funding round, which included $100 million from founder Ritesh Agarwal. The company is also expected to refile its draft IPO papers soon, after previously withdrawing them due to unfavorable market conditions.

In the last fiscal year, OYO reported a profit of Rs 239 crore after tax, although its revenue from operations declined by 1.4% to Rs.5,389 crore in FY24, down from Rs.5,464 crore in FY23.

OYO founder Ritesh plans to utilize its extensive technology suite, global distribution network, and marketing expertise to enhance the Motel 6 and Studio 6 brands while driving ongoing financial growth. The travel tech platform has been steadily expanding its presence in the US since its launch in 2019 and currently operates over 320 hotels across 35 states.