Oravel Stays, the parent company of Indian travel technology company Oyo, has completed its acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million. In doing so, it will part ways with current G6 Hospitality CEO Julie Arrowsmith.
Oyo plans to accelerate the growth of the Motel 6 and Studio 6 brands by adding more than 150 hotels in 2025, expanding their presence in key markets across the U.S.
The company aims to maintain the brands’ iconic status and customer loyalty, while leveraging Oyo’s technological and operational advantages to further strengthen the brands. All existing franchise agreements, including exclusivity rights, will be honored and the franchise success teams will continue their operations seamlessly.
In September, Blackstone agreed to sell the economy hotel chain Motel 6 and sister chain Studio 6 in an all-cash deal. The private equity giant acquired Motel in 2012 for $1.9 billion from Accor.
The move marks a significant step in Oyo’s expansion strategy, as it looks to strengthen its foothold in the U.S. economy lodging segment. The Indian company will elevate G6 Hospitality’s operations with a focus on technology, property upgrades and market growth.
Technological upgrades
As part of the integration, Oyo intends to make significant technological upgrades to G6’s operations. The company will improve the guest experience through an enhanced mobile and web booking interface, as well as dynamic pricing capabilities designed to optimize room rates throughout the year. Oyo’s 300-member team of product specialists, including software engineers and designers, will lead the charge in developing these innovations.
Beyond improving the guest experience, Oyo will also enhance operational efficiency by diversifying its distribution channels. The company will expand its network of distribution partners beyond traditional online travel agencies and boost its direct booking channels and corporate bookings.
Leadership changes
In tandem with the acquisition, Oyo has announced several leadership changes to streamline operations and drive future growth. Sonal Sinha has been appointed as the CEO of G6 Hospitality, while Tina Burnett will continue in her role as chief development officer. Other key appointments include Nishant Boorla and Anuj Ladha, who will lead brand performance, and Manas Mehrotra, who will head central operations.
As part of the transition, several executive committee members will be moving on to new opportunities. These include Julie Arrowsmith (president & CEO), Adam Cannon (chief brand officer), Farah Bhayani (general counsel and chief compliance officer), Perry Ping (chief financial officer), Mary Fregia (chief human resource officer) and Brent Haines (chief information officer).
Restructuring strategies
Oyo is also implementing strategic restructuring to create operational synergies between its global operations and G6’s existing structure. This includes the consolidation of some corporate functions while expanding its franchisee-facing teams. However, the company emphasized that critical functions such as franchise development, support and safety, will remain fully intact.
“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 and safety & security. Over the years, Oyo has been able to successfully leverage already developed capabilities in India on technology, revenue management, e-commerce, procurement, legal, finance and HR and will enable this for the G6 business too,” said Gautam Swaroop, CEO, Oyo International.
