Dive Brief:
- Travel and hospitality firm OYO has completed its $525 million acquisition of G6 Hospitality, the firm that owns the Motel 6 and Studio 6 brands, OYO parent company Oravel Stays announced Tuesday.
- OYO plans to “accelerate growth” of G6 Hospitality’s operations through technology integration, property upgrades and market expansion, according to OYO. It also plans to add more than 150 hotels under the Motel 6 and Studio 6 brands in 2025.
- The deal completion comes with leadership changes, with OYO’s Sonal Sinha taking over for departing G6 CEO Julie Arrowsmith. The acquisition is set to expand the Indian company’s presence in the U.S. after a shaky initial start in the market in 2019.
Dive Insight:
OYO first announced plans to acquire G6 Hospitality from Blackstone Real Estate in September. In Tuesday’s announcement, OYO said its vision for Motel 6 and Studio 6 is “focusing on growth” while preserving the brands’ “core values, distinct identity and leveraging the advantages of a shared corporate structure,” according to the company.
OYO said it plans to implement technology solutions such as upgraded mobile and web booking and dynamic pricing capabilities to enhance the guest experience and improve operational efficiency at G6 brands.
The company also intends to develop a broader distribution network beyond traditional online travel agencies, strengthen direct booking and grow corporate booking demand.
Meanwhile, OYO is already underway on a corporate restructuring designed to further boost growth. Sinha — who previously served as senior vice president and CFO of OYO International, according to LinkedIn — will take over as G6 CEO, as Arrowsmith departs. Tina Burnett will continue in her role as G6’s chief development officer. Sinha will report to the CEO of OYO International, Gautam Swaroop.
Other leadership appointments include Nishant Boorla and Anuj Ladha, who will head brand performance; Manas Mehrotra as central operations head; and Subhankar Choudhary as head of revenue, e-commerce and sales.
In addition to Arrowsmith, departing G6 leaders include Chief Brand Officer Adam Cannon, General Counsel and Chief Compliance Officer Farah Bhayani, CFO Perry Ping, Chief Human Resources Officer Mary Fregia and Chief Information Officer Brent Haines.
In a statement, Swaroop said that OYO International “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 and security, as well as leverage “already developed capabilities in India” including technology, revenue management, e-commerce, procurement, legal, finance and HR.
Prior to the G6 acquisition, OYO operated 320 hotels in the U.S., according to Blackstone. Founded in 2012, OYO first entered the U.S. in 2019 — but lost $50 million in its first year in the market, The Information reported.
Industry experts previously told Hotel Dive that the company’s initial U.S. foray was plagued by a lack of brand recognition.
OYO did not immediately respond to a Hotel Dive request for comment.
