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

Noida Property Circle Rates to Increase by 20%

Noida Property Circle Rates to Increase by 20%

0
Uttar Pradesh has proposed a 20% hike in the region’s circle rates, marking the first increase in nine years. The revision, slated to take...
Gyproc India and Dalmia Bharat to Offer Ceiling and Drywall Training

Gyproc India and Dalmia Bharat to Offer Ceiling and Drywall Training

0
Gyproc India and Dalmia Bharat Foundation have joined hands to provide special training in drywall and false ceiling installation. This new training programme aims...
Tata Steel Leads Manufacturing with AI Integration

Tata Steel Leads Manufacturing with AI Integration

0
Tata Steel has integrated over 550 artificial intelligence (AI) models across its operations, transforming manufacturing efficiency, monitoring blast furnace performance, and optimising energy use....
Godrej buys 6.5 acres in Navi Mumbai for Rs 717 crore development

Godrej buys 6.5 acres in Navi Mumbai for Rs 717 crore development

0
A leading real estate company has made a major investment by acquiring 6.5 acres of land in Kharghar, Navi Mumbai, for Rs 717 crore....
UltraTech and Ambuja Cement Stocks Upgraded

UltraTech and Ambuja Cement Stocks Upgraded

UltraTech, one of the sector’s leaders, saw its stock rise by over 4% in early trading, pushing the price to Rs 11,428.55 on the...