Softbank-backed hospitality startup Oyo has completed its acquisition of G6 Hospitality, which operates lodging franchisor brands Motel 6 and Studio 6, from Blackstone Real Estate for $525 million (Rs 4,463 crore) in an all-cash transaction, the company said.
This comes after the Gurugram-based company posted its first-ever profit after tax of approximately Rs 229 crore in FY24, followed by a profit of Rs 132 crore in Q1 FY25, as per reports.
Ankit Tandon, Global CBO and Head of M&A at Oyo expects the acquisition to be “value accretive” due to G6’s strong brand franchise in the US, and potential for growth and synergies.
“Our success in Europe, where we nearly tripled EBITDA through strategic synergies for our vacation homes business, has given us a clear roadmap for value creation,” he said.
The deal is projected to increase Oyo's earnings before interest, taxes, depreciation and amortization (EBITDA) to over Rs 2,000 crore in FY26. Motel 6 is expected to contribute an EBITDA of over Rs 630 crore in the coming financial year, which will be the first full year of its integration, the company said.
Oyo clocked an adjusted EBITDA of Rs 888 crore for FY24, up from Rs 274 crore in FY23.
The acquisition has prompted organisational changes at G6 Hospitality, with Sonal Sinha appointed as CEO. The company plans to maintain G6's franchise development, support, and safety operations while integrating corporate functions with Oyo's global excellence teams.
The hospitality major is targeting the addition of over 150 hotels in 2025 under the Motel 6 and Studio 6 brands. This expansion is expected to strengthen the brands' presence in key markets while preserving their core values and distinct identity, Oyo said.
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The acquisition of G6 Hospitality adds approximately 1,500 franchised hotels across the US and Canada to Oyo's portfolio, significantly expanding its North American presence. The combined entity is projected to generate a Gross Booking Value (GBV) of approximately $3 billion, with G6 Hospitality contributing $1.7 billion to this.
Oyo has expanded its European presence using a similar strategy, through strategic acquisitions under Oyo Vacation Homes (OVH). The company's portfolio includes DanCenter, a vacation home management company managing 12,000 properties across Denmark, Sweden, Norway, and Germany.
Since its acquisition in 2019, Oyo claims that DanCenter has doubled both revenue and market presence. OVH's brands include Belvilla, which manages 65,000 holiday homes across 20 countries, and TraumFerienwohnungen, an online vacation rental platform with 100,000 homes.
Oyo had also acquired Direct Booker in Croatia (3,200 homes) in 2022 and most recently, CheckMyGuest, a premium vacation rental company based in Paris, to boost its presence in the European market.
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