The budget motel chain Motel 6 is being taken over by the parent company of the India-based hotel operator Oyo.
New York-based investment firm Blackstone, which also owns G6 Hospitality, the parent company of Motel 6, said Friday that the deal could be an all-cash transaction valued at $525 million.
The transaction also includes the sale of the Studio 6 motel brand, which targets customers searching for longer stays. The deal is anticipated to shut by the top of the yr.
Oyo, which was launched in India just over a decade ago, is expands its presence within the United States in recent times. The company says it currently operates 320 hotels in 35 states and plans so as to add 250 more this yr.
“This acquisition is an important milestone for a startup company like us to strengthen our international presence,” said Gautam Swaroop, head of international at OYO, in an announcement.
Blackstone bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has invested heavily within the brand and pursued a method that transformed the chain right into a franchise company.
“This transaction is a great exit for investors and represents the culmination of an ambitious business plan that has more than tripled our investors’ capital and generated over $1 billion in profits during our hold period,” Rob Harper, head of Blackstone Real Estate Asset Management Americas, said in an announcement.
As a part of the deal, Oravel Stays, which owns Oyo, will acquire G6 Hospitality.
