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

India Furniture Market Expands With Sustainability Focus

India Furniture Market Expands With Sustainability Focus

0
India’s furniture market is projected to reach USD 43 billion by 2030, reflecting a shift in consumer expectations and urban lifestyles that is reshaping...
Pushpesh Singh Elevated To Region Head At Arvind SmartSpaces

Pushpesh Singh Elevated To Region Head At Arvind SmartSpaces

0
Arvind SmartSpaces has appointed Pushpesh Singh as Region Head – Contracts, signalling a strategic focus on strengthening governance and operational oversight across its regional...
Kamal Rekhi Joins Bhumika Realty As Chief Business Officer

Kamal Rekhi Joins Bhumika Realty As Chief Business Officer

0
Bhumika Realty has appointed Kamal Rekhi as its Chief Business Officer – International, marking a strategic milestone in the company’s efforts to broaden its...
Birla Opus Paints Launches Pongal Festive Campaign

Birla Opus Paints Launches Pongal Festive Campaign

0
Birla Opus Paints has launched a new festive marketing campaign to coincide with Pongal, highlighting the brand’s efforts to connect with urban and regional...
MSHRC Orders Fair Compensation For Kalyan Property Owners

MSHRC Orders Fair Compensation For Kalyan Property Owners

0
The Maharashtra State Human Rights Commission (MSHRC) has directed the Thane district collector to provide compensation to a landowner whose property in Kalyan was...