Group items tagged

INDIA-BASED ORAVEL Stays, the parent company of the global travel technology company OYO, has agreed to purchase G6 Hospitality, franchiser for the economy Motel 6 and Studio 6 brands, for $525 million from Blackstone Real Estate. The all-cash transaction is expected to close in the fourth quarter, subject to customary closing conditions. Since launching in the U.S. in 2019, OYO has expanded to operate more than 320 hotels across 35 states, according to a joint statement from the companies. It aims to add around 250 hotels to its network this year, offering a technology suite, global distribution network and marketing expertise. "This acquisition is a significant milestone for a startup company like us to strengthen our international presence," said Gautam Swaroop, CEO of OYO International. "Motel 6's strong brand recognition, financial profile and network in the US, combined with OYO's entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity."

INDIA-BASED ORAVEL STAYS, the parent company of OYO, is reportedly in talks to raise $200 million in a primary funding round, according to Business Standard. The funds are expected to support OYO's potential acquisition of G6 Hospitality, which owns the budget Motel 6 and Studio 6 chains in the U.S. Oravel Stays aims for a valuation between $4.5 billion and $5 billion, up from its previous $2.4 billion valuation, though still below its earlier $10 billion target. The company is in discussions with offshore institutional and private Indian investors to secure the funding, Business Standard reported. Among the private investors involved are InCred Wealth, J&A Partners, the Mankind Pharma family office, and ASK Financial Holdings, all of whom previously valued OYO at $2.4 billion. OYO, backed by SoftBank, has not commented on the matter.