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

Coal India Board Appoints B Sairam As Chief Executive Officer

Coal India Board Appoints B Sairam As Chief Executive Officer

0
The board of Coal India Limited (CIL), India’s largest coal producer, has appointed Chairman-cum-Managing Director B Sairam as the company’s Chief Executive Officer (CEO),...
Maharashtra Clears Seven Of Fourteen National Waterways For Immediate Development Plans

Maharashtra Clears Seven Of Fourteen National Waterways For Immediate Development Plans

0
The central government has cleared seven of Maharashtra’s 14 national waterways for development, a strategic step towards strengthening inland water transport (IWT) in the...
Government To Launch SWAMIH2 Fund To Complete One Lakh Homes

Government To Launch SWAMIH2 Fund To Complete One Lakh Homes

0
The government is preparing to operationalise the SWAMIH-2 Fund, a strategic initiative aimed at completing nearly one lakh stalled housing units, offering much-needed relief...
VOX Showcases Design Led Ceiling Innovation At FOAID Mumbai 2025 Event

VOX Showcases Design Led Ceiling Innovation At FOAID Mumbai 2025 Event

0
Mumbai has emerged as a hub for design-driven architectural innovation as VOX, the European surface solutions brand, highlighted its ceiling systems at FOAID Mumbai...
Platinum Corp Appoints Seema Saini To Lead Sales And Corporate Affairs

Platinum Corp Appoints Seema Saini To Lead Sales And Corporate Affairs

0
Platinum Corp has appointed Seema Saini as Vice President – Sales and Corporate Affairs, signalling a strategic push to strengthen its brand presence and...