Mon Sep 23 23:23:46 UTC 2024: ## Indian Startup Oyo Acquires Motel 6 in $525 Million Deal
**SEATTLE, WA** – In a significant acquisition, Oyo, an Indian-based travel company, has purchased the iconic Motel 6 chain in a $525 million all-cash transaction. The deal also includes Motel 6’s extended-stay brand, Studio 6, and is expected to close by the end of the year.
The move marks a major milestone for Oyo, which has been rapidly expanding its global presence since its founding in 2013. With this acquisition, Oyo will now operate over 320 hotels across 35 states in the U.S., a market it entered five years ago.
Motel 6, known for its affordability and “We’ll Leave the Light On for You” slogan, will continue to operate as a separate entity. The brand’s strong recognition and financial profile, combined with Oyo’s entrepreneurial spirit, are seen as a key to the company’s future success.
The acquisition comes as the U.S. hotel industry grapples with the ongoing recovery from the pandemic. Occupancy rates for economy-class hotels, like Motel 6, have been lagging, with occupancy rates at 54.2% in the first eight months of 2023, down 2.2% from the previous year. Room rates are also down slightly.
Industry analysts are watching to see how Oyo will integrate Motel 6 into its existing brand. Some speculate that the company may rebrand Motel 6 hotels under the Oyo name, while others believe the Motel 6 brand will be retained.
Blackstone, the New York-based company that owned Motel 6, originally purchased the chain in 2012 for $1.9 billion. Motel 6 was founded in 1962 in Santa Barbara, California, by two construction company owners who sought affordable lodging options for their employees and families traveling across the country. The brand currently operates nearly 1,500 hotels across the U.S. and Canada.
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