The New York-based investment firm Blackstone, which currently owns G6 Hospitality - Motel 6's parent company, announced a landmark all-cash transaction worth $525 million on Friday. As part of the deal, the Studio 6 motel brand, known for catering to customers seeking extended stays, will also be included. The acquisition is expected to be finalized by the end of the year.

Oyo, which made its debut in India just over a decade ago, has been actively broadening its presence in the United States in recent years. Currently managing 320 hotels across 35 states, the company has ambitious plans to add another 250 properties by the end of this year. Gautam Swaroop, OYO's international division chief, expressed that the purchase of Motel 6 marks a significant milestone for the startup, enhancing its global footprint.

Blackstone originally purchased Motel 6 and Studio 6 back in 2012 for $1.9 billion and has since been dedicated to investing in and evolving the brand. By strategically transitioning the chain into a franchise model, the private equity giant has seen substantial success. Rob Harper, the head of Blackstone Real Estate Asset Management Americas, stated that the transaction represents a remarkable outcome for investors. Over the holding period, the business plan not only tripled investors' capital but also generated more than $1 billion in profits.

As part of the acquisition deal, Oravel Stays, the entity owning Oyo, will assume ownership of G6 Hospitality. This acquisition symbolizes a pivotal moment in Oyo's journey as it aims to solidify its presence on the international stage. The strategic move underscores the continuous evolution and growth of both Oyo and Motel 6 within the ever-changing landscape of the hospitality sector.