America's most popular motel chain is sold to overseas buyer for $525 million

An India-based edifice usability is to acquisition America's astir celebrated motel concatenation successful a $525 cardinal all-cash deal. 

The woody will see budget motel concatenation Motel 6 being acquired by nan genitor institution of Oyo, a edifice usability based in India.

The New York-based finance patient Blackstone, which owns Motel 6's genitor institution G6 Hospitality said nan woody would beryllium an all-cash transaction, pinch nan woody expected to adjacent by nan extremity of nan year.

The transaction will besides see nan waste of nan Studio 6 motel brand, which caters to customers seeking extended stays. 

Oyo, which launched successful India conscionable complete a decade ago, has been expanding its footprint in nan U.S. complete nan past fewer years. 

The institution says it presently operates 320 hotels crossed 35 states and is aiming to adhd 250 much this year. The company, headed by CEO Ritesh Agarwal, operates complete 157,000 hotels and homes successful 35 countries.

'This acquisition is simply a important milestone for a startup institution for illustration america to fortify our world presence,' Gautam Swaroop, OYO's world section chief, said successful a statement.

'Motel 6's beardown marque recognition, financial floor plan and web successful nan US, mixed pinch OYO's entrepreneurial tone will beryllium instrumental successful charting a sustainable way guardant for nan company.' 

Blackstone had purchased Motel 6 and Studio 6 successful 2012 for $1.9 billion. 

Since then, nan backstage equity elephantine says it has heavy invested successful nan marque and pursued a strategy that converted nan concatenation into a franchise.

'This transaction is simply a terrific result for investors and is nan culmination of an eager business scheme that much than tripled our investors´ superior and generated complete $1 cardinal successful profit complete our clasp period,' Rob Harper, caput of Blackstone Real Estate Asset Management Americas, said.

Under nan deal, Oravel Stays, which owns Oyo Hotels, will get G6 Hospitality.

Motel 6 was founded successful Santa Barbara, California, successful 1962, by 2 section building contractors: William Becker and Paul Greene.

The brace came up pinch a scheme to build motels pinch rooms astatine debased costs rates. 

They decided connected a $6 room complaint per nighttime (equivalent to $60 successful 2023), which would screen building costs, onshore leases, and janitorial supplies; hence nan institution sanction Motel 6.