Oyo 2.0: After Motel 6 Acquisition, Next Comes an IPO
Skift Take
In a move to expand its international reach, India-based hospitality company Oyo announced the acquisition of Motel 6 and Studio 6, two economy lodging brands, from Blackstone for $525 million. This all-cash deal positions Oyo to significantly boost its presence in the U.S., adding nearly 1,500 properties to its portfolio.
The acquisition also strengthens Oyo’s market position as it prepares for a long-anticipated IPO. Last month, when Oyo raised INR 14.5 billion (approximately $175 million) in a funding round, the hospitality company had said that it would use the capital to support its global expansion plans.
Oyo's journey in the U.S. began in 2019. Today, Oyo operates 320 hotels in 35 U.S. states and plans to add an additional 250 properties in 2024. The Motel 6 deal will provide Oyo with a cash flow boost: Motel 6’s franchise net
