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

Visakhapatnam Real Estate Benefits From Technology Growth

Visakhapatnam Real Estate Benefits From Technology Growth

0
Visakhapatnam’s real estate market has witnessed a sharp uptick in land and plot prices, following substantial investments in information technology, data centres, and digital...
https://urbanacres.in/delhi-property-tax-collections-surge-under-amnesty-scheme/

Delhi Property Tax Collections Surge Under Amnesty Scheme

0
The Delhi municipal administration has reported significant uptake of its Property Tax Amnesty Scheme 2025-26, as thousands of homeowners and commercial property owners cleared...
Mumbai Sees Surge In Residential Property Registrations

Mumbai Sees Surge In Residential Property Registrations

0
Property registrations in the Mumbai municipal region rose sharply during 2025, reaching 1,50,231 units—a 6 per cent increase over the previous year—marking the highest...
Lodha Records 640 Crore Mumbai Region Housing Sale

Lodha Records 640 Crore Mumbai Region Housing Sale

0
A large-scale residential allotment in the northern Mumbai Metropolitan Region has underscored the depth of demand for mid-priced housing as buyers continue to look...
Select Group Acquires Prime Westend Colony Home South Delhi Rs 12500 Crore

Select Group Acquires Prime Westend Colony Home South Delhi Rs 12500 Crore

0
The Delhi-based Select Group has completed a high-profile acquisition of a residential property in Westend Colony, South Delhi, for Rs 12.5 billion, highlighting the...