Blackstone to Sell Motel 6 Brand to Oyo in $525 Million Deal

Deal to Bolster Oyo's Presence in North America

Blackstone Group is selling its Motel 6 brand to Oyo Hotels & Homes in a $525 million deal that will significantly bolster Oyo's presence in North America. The transaction is expected to close in the third quarter of 2023 and is subject to customary closing conditions, including regulatory approvals.

Under the terms of the agreement, Oyo will acquire all of the assets and operations of Motel 6, including its portfolio of over 1,400 economy lodging properties across the United States and Canada. The deal will make Oyo the largest owner and operator of budget hotels in North America, with a combined portfolio of over 2,000 properties.

Deal Highlights

• Blackstone will sell Motel 6 to Oyo for $525 million.
• The deal is expected to close in Q3 2023, subject to regulatory approval.
• Oyo will acquire all of Motel 6's assets, including its 1,400+ properties.
• The deal will make Oyo the largest budget hotel owner in North America.

Blackstone's Strategy

Blackstone's decision to sell Motel 6 is part of its broader strategy to exit the hotel ownership business. The firm has been gradually divesting its portfolio of hotels over the past few years, as it focuses on other investment opportunities.

Oyo's Expansion Plans

The acquisition of Motel 6 is a major step in Oyo's plans to expand its presence in North America. The company, which is based in India, has been rapidly expanding in recent years, and the Motel 6 deal will give it a significant foothold in the U.S. and Canadian markets.

Analysts' Views

Analysts say the deal is a positive move for both Blackstone and Oyo. The sale will allow Blackstone to exit a non-core asset, while Oyo will benefit from the acquisition of a well-known and established brand.

Sources

1. Blackstone to Sell Motel 6 Brand to Oyo for $525 Million
2. Blackstone Said to Sell Motel 6 Chain to Oyo for Over $500 Million
3. Exclusive: Blackstone to sell Motel 6 chain to Oyo for over $500 mln - sources