OYO, the global travel technology company, announced that it has finalized the acquisition of G6 Hospitality, the franchisor of the Motel 6 and Studio 6 brands, for $525 million from Blackstone Real Estate. This acquisition marks a key milestone in OYO’s expansion strategy.
An ambitious expansion plan
OYO is not only completing this strategic acquisition but also plans to accelerate the growth of G6 Hospitality, with the goal of adding more than 150 additional hotels under the Motel 6 and Studio 6 brands by 2025. This initiative aims to strengthen the brands’ presence in key markets while leveraging technology integration and infrastructure improvements.
Preserving the identity of iconic brands
One of the main challenges of this acquisition is maintaining the identity and values of the Motel 6 and Studio 6 brands, which are known for their loyal customer base and strong recognition over the decades. OYO has assured that it will respect and honor all existing franchise agreements, including exclusivity rights, while keeping the current franchise success teams in place without disrupting operations.
Technological innovations for an enhanced customer experience
As part of this acquisition, OYO plans to roll out technological advancements to improve customer experience and operational efficiency. Leveraging its team of 300 technology experts, the company will implement innovative digital solutions, including an improved mobile and web booking experience and a dynamic pricing system that optimizes rates based on room types.
Strengthening distribution and revenue growth
OYO also plans to expand its distribution network, going beyond traditional online travel agencies. At the same time, the company aims to strengthen its direct booking channels and capitalize on corporate booking demand to drive revenue growth.
Restructuring and strategic appointments
To drive this transformation, OYO has launched a restructuring process to leverage synergies between the teams of both companies. Sonal Sinha, previously in charge of strategy at OYO, has been appointed CEO of G6 Hospitality. Several other key leaders have also been appointed, including Nishant Boorla and Anuj Ladha, who will lead brand performance, and Manas Mehrotra, who will be responsible for central operations.
Changes within G6 Hospitality’s executive team also mark a turning point, with the departure of several long-time executives, including Julie Arrowsmith, former president and CEO of G6, and Adam Cannon, chief brand officer. OYO has praised these leaders for their roles in strengthening the brands and positioning the company for future growth.
Optimizing internal functions
To optimize operational efficiency, OYO will also be recruiting for franchise-facing roles while consolidating some internal operations. The organization dedicated to franchise development and security will remain intact, and OYO will merge some of its functions with the company’s global teams.
“We will continue to invest in skills that are unique and critical to the G6 business such as Supply, Account Management, Corporate Sales, Brand Standards, Offline marketing, Safety & Security. Over the years, OYO has been able to successfully leverage already developed capabilities in India on Technology, Revenue Management, Ecommerce, Procurement, Legal, Finance, and HR and will enable this for the G6 business too.” – Gautam Swaroop, CEO, OYO International
