OYO completes acquisition of G6 Hospitality

The hospitality industry across the world experiences a drastic change with this giant deal of OYO. OYO has confirmed its acquisition of G6 Hospitality from Blackstone Real Estate at $525 million (Rs 4,463 crore). On its own, the move gives OYO more leverage in the North American hospitality industry.

As for the second strategy, the company anticipates that enhancement of this integration shall lead to considerable growth of its EBITDA. These shifts expose important progress in OYO’s journey from a startup to a company that is acquiring well-established brands.

The acquisition is a key step in OYO’s internationalisation plan which has seen the Firm establish operations in numerous countries. The benefits for the two companies suggest a high level of cost savings as a result of operations synergies.

Strategic Acquisition and Financial Impact

Softbank-backed OYO has finalised the G6 Hospitality deal for $525 million. The all-cash transaction brings Motel 6 and Studio 6 under OYO’s management. OYO posted its maiden profit of Rs 229 crore in FY24.

The company followed this success with Rs 132 crore profit in Q1 by FY25. The acquisition will boost OYO’s EBITDA to Rs 2,000 crore by FY26. Motel 6 expects to contribute Rs 630 crore in FY25. This strategic move strengthens OYO’s position in the North American market. The deal demonstrates OYO’s commitment to expanding its global market presence. Global Chief Business Officer Ankit Tandon sees significant value in this acquisition.

Expansion Plans and Portfolio Growth

OYO plans to add 150 new hotels under these brands in 2025. The deal brings 1,500 franchised hotels across US and Canada to OYO. Ritesh Agarwal’s company significantly strengthens its presence in North American markets now. The acquisition aligns with OYO’s strategy for international market expansion perfectly. OYO manages an impressive portfolio of 184,000 properties across multiple regions. The company maintains a strong presence in Europe, US, UK, and Asia. DanCentre manages 12,000 properties across four Northern European countries effectively.

Synergies and Value Creation Opportunities

OYO’s success in Europe demonstrates its ability to create substantial value. The company nearly tripled its EBITDA through strategic synergies in Europe. This experience provides a clear roadmap for the G6 Hospitality integration. OYO expects similar success through operational improvements in the American market. The company plans to leverage its technological expertise for better operations. Both brands will benefit from OYO’s advanced property management systems significantly. The integration will create new opportunities for growth across markets.