HomeLatestOyo's $525 million acquisition of G6 Hospitality strengthens its North American presence

Oyo’s $525 million acquisition of G6 Hospitality strengthens its North American presence

Oyo’s $525 million acquisition of G6 Hospitality strengthens its North American presence

Hospitality major Oyo has successfully acquired G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, for $525 million. This strategic move adds approximately 1,500 franchised hotels across the US and Canada to Oyo’s burgeoning portfolio, strengthening its foothold in North America. The acquisition comes at a pivotal time for Oyo, as its US operations show promising growth with a presence in 35 states and nearly 400 properties since its 2019 launch.

This acquisition is projected to significantly enhance Oyo’s financial performance. By FY26, the company anticipates its earnings before interest, taxes, depreciation, and amortisation (Ebitda) to surpass ₹2,000 crore. Motel 6 alone is expected to contribute ₹630 crore to Ebitda within the first year of integration. Additionally, the combined entity is forecasted to generate a gross booking value of approximately $3 billion, with G6 Hospitality accounting for $1.7 billion. Oyo’s success in Europe has provided a roadmap for leveraging strategic synergies, ensuring this acquisition drives value creation.

From a sustainability angle, this move underscores Oyo’s commitment to optimising resources and creating operational efficiencies across its expanding global footprint. By integrating sustainable practices and technologies, Oyo aims to set a benchmark for environmentally conscious hospitality. The company’s focus on energy efficiency and waste management in existing and new properties aligns with its broader ESG goals.

This acquisition also highlights broader urban and civic implications. The influx of hospitality investments in North America is expected to boost local economies, create employment opportunities, and improve tourism infrastructure. While Oyo’s valuation currently stands at $4.6 billion, significantly lower than its peak $9 billion valuation in 2021, the acquisition positions the company for long-term growth and resilience in the competitive global hospitality sector.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -spot_img

Most Popular

Recent Comments

Sattva Group Introduces New Premium Residential Community In West Bengaluru

Sattva Group Introduces New Premium Residential Community In West Bengaluru

0
West Bengaluru’s residential corridor along Mysore Road is witnessing renewed development momentum with the launch of a large premium housing project by Sattva Group,...
Dalmia Cement Secures Approval for Major Capacity Expansion

Dalmia Cement Secures Approval for Major Capacity Expansion

0
Dalmia Cement has received regulatory clearance from the Bihar government to significantly scale up production at its manufacturing facility in Rohtas district, marking a...
BA Continuum Acquires Large Powai Office In Mumbai

BA Continuum Acquires Large Powai Office In Mumbai

0
Mumbai’s commercial real estate sector marked a significant transaction as BA Continuum India, a subsidiary of Bank of America, secured a 1.11 lakh sq...
Bollywood Actor Tusshar Kapoor Family Exits Chandivali Office Asset in Rs 559 Cr Deal

Bollywood Actor Tusshar Kapoor Family Exits Chandivali Office Asset in Rs 559 Cr Deal

0
A high-value commercial real estate transaction involving Bollywood actors Tusshar Kapoor and veteran star Jeetendra has underscored the growing depth of Mumbai’s mid-city office...
Olive Group Targets Navi Mumbai Airport Growth Zone

Olive Group Targets Navi Mumbai Airport Growth Zone

0
As large-scale transport infrastructure begins reshaping development patterns across the Mumbai Metropolitan Region, Olive Group has outlined a renewed development strategy centred on the...