{"id":23791,"date":"2024-09-26T00:00:00","date_gmt":"2024-09-25T20:00:00","guid":{"rendered":"https:\/\/stockify.net.in\/?p=23791"},"modified":"2025-02-03T15:00:07","modified_gmt":"2025-02-03T11:00:07","slug":"oyo-aquires-us-motel-chain-in-525-million-all-cash-deal","status":"publish","type":"post","link":"https:\/\/tester-hub.com\/stockifyfintech\/blog\/oyo-aquires-us-motel-chain-in-525-million-all-cash-deal\/","title":{"rendered":"OYO Aquires US Motel Chain In $525 million All-Cash Deal"},"content":{"rendered":"\n

Oravel Stays, the parent company of the Indian travel technology company OYO, has acquired G6 Hospitality for $525 million in an all-cash deal. G6 Hospitality is an American company that has franchised iconic brands like Motel 6 and Studio 6, and it is owned by Blackstone Real Estate. This deal is expected to close in the 4th quarter of 2024.<\/p>\n\n\n\n

How will this acquisition be financed?<\/h2>\n\n\n\n

Softbank-banked Oravel Stays is anticipated to finance this deal in all cash by raising fresh debt despite no official comments on the details of the transactions from the company representatives.\u00a0<\/p>\n\n\n\n

What do the company\u2019s higher-ups say?<\/h2>\n\n\n\n

As per the Chief Executive of OYO International, Gautam Swaroop<\/strong>, \u201cThis acquisition is a significant milestone for a startup company like us to strengthen our international presence. Motel 6’s strong brand recognition, financial profile, and network in the US, combined with OYO\u2019s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity.\u201d<\/p>\n\n\n\n

Julie Arrowsmith, CEO of G6 Hospitality said<\/strong>, \u201cOYO\u2019s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades.\u201d<\/p>\n\n\n\n

Rob Harper, Head of Blackstone Real Estate Asset Management Americas, said<\/strong>, \u201cThis transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors\u2019 capital and generated over $1 billion in profit over our hold period. We believe G6 is extremely well-positioned for the future and we look forward to seeing its brands continue their success in the years to come.\u201d<\/p>\n\n\n\n

How is OYO\u2019s market performance?<\/h2>\n\n\n\n

OYO entered the US market in the year 2019. It is currently operating with 320 hotels across 36 states. In 2023, the company expanded by adding 100 hotels. This it has plans to add 250 more. In India, the company mainly focuses on providing hotel aggregation services, whereas in Europe, it focuses on the home rental business. Worldwide, OYO manages 1,75,000 hotels<\/a> and home rentals across India, Europe, Malaysia, and Indonesia.<\/p>\n\n\n\n

How is OYO\u2019s financial performance?<\/h2>\n\n\n\n

In FY23-24, Oyo recorded a net profit of Rs. 229.5 <\/a>crore against a loss of Rs. 1,286.5 crore in FY23. Its operational revenue also saw a decline of 1.4%. The EBITDA of OYO is expected to cross Rs. 2,000 crore<\/a> in FY25-26. <\/p>\n\n\n\n

It is expected that Motel 6 will add over Rs. 630 crore to it EBITDA as well. In terms of funding, it has recently raised Rs. 1,457 crores at a valuation of $2.5 billion from several investors including:<\/p>\n\n\n\n