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

Delhi Elite Enclave Eyes Landmark Transaction

Delhi Elite Enclave Eyes Landmark Transaction

0
A potential ₹1,000 crore transaction in Lutyens Delhi is moving through advanced due diligence, signalling one of the largest private residential deals ever contemplated...
Mumbai Worli Luxury Project Announced

Mumbai Worli Luxury Project Announced

0
Mumbai’s premium real estate market is set for a new branded hospitality-led development in Worli after Oberoi Realty entered into a partnership with Switzerland-based...
India Fractional Luxury Homes Hit 500 Crore

India Fractional Luxury Homes Hit 500 Crore

0
Per Annum’s luxury housing investment platform has crossed ₹500 crore in assets under management within a year of launch, signalling growing investor appetite for...
Mumbai Managed Office Demand Drives Smartworks Lease

Mumbai Managed Office Demand Drives Smartworks Lease

0
Mumbai’s flexible workspace market has gained fresh momentum with Smartworks securing 1.82 lakh square feet in Andheri East, pushing its total footprint in the...
Mumbai BMC Expands Slum Redevelopment Push

Mumbai BMC Expands Slum Redevelopment Push

0
Mumbai’s civic administration has initiated a fresh round of slum redevelopment by inviting developers to participate in 26 informal housing clusters across the city,...