Oravel Stays, the parent company of OYO, is set to acquire G6 Hospitality, the umbrella brand behind Motel 6 and Studio 6, for $525 million in an all-cash deal. This acquisition is expected to close in the fourth quarter of 2024. Oravel Stays, based in Gurgaon, India, is expanding its global presence with this purchase, which comes as the budget hotel market continues to grow, valued at $276.3 billion in 2022 and projected to reach $430.9 billion by 2032.

Overview of Motel 6 and its parent company
G6 Hospitality, which includes over 1,450 Motel 6 properties across the U.S. and Canada, has gross revenues of approximately $1.7 billion annually. Motel 6, known for its affordable lodging, is often located near major transportation hubs like airports and freeways. Studio 6, an offshoot of Motel 6, specializes in extended-stay lodging with over 200 properties.
Blackstone acquired G6 in 2012 for $1.9 billion and, through significant investments, transformed the business into a leading asset-light brand with a strong franchise network. The deal with Oravel Stays marks a successful exit for Blackstone, tripling investors’ capital and generating over $1 billion in profit during its ownership.
Oravel Stays Reaction on Motel 6 Bought by OYO
Gautam Swaroop, CEO of OYO International, sees this acquisition as a key milestone for Oravel Stays, enhancing its presence in the U.S. Julie Arrowsmith, President and CEO of G6 Hospitality, praised Blackstone’s contributions and expressed optimism about OYO’s innovative approach to further enhancing the Motel 6 brand.
Oravel Stays, which expanded into the U.S. in 2019, now operates over 320 hotels across 35 states. With a global portfolio that spans 157,000 hotels and homes across 35 countries, Oravel Stays aims to add around 250 new properties by the end of 2024.
Budget Hotel Industry in the United States
The budget hotel industry in the United States is a thriving segment of the hospitality market, catering to cost-conscious travelers who seek basic amenities at reasonable prices. In recent years, budget hotels have seen consistent demand, especially from travelers who prioritize affordability and convenience over luxury. According to Allied Market Research, the global budget hotel market was valued at $276.3 billion in 2022 and is expected to reach $430.9 billion by 2032. In the U.S., brands like Motel 6 and Studio 6 are household names, offering affordable accommodations near major transportation routes, airports, and urban areas. This market is bolstered by strong domestic tourism, road trips, and business travelers seeking economical options for short stays.
The rise of digital booking platforms and the increasing popularity of extended-stay hotels like Studio 6 also play a pivotal role in the growth of this sector, as they cater to both leisure and business travelers who require flexible, longer-term accommodations at budget-friendly rates.
Why Start a Budget Hotel Franchise?
Starting a budget hotel franchise presents several advantages for investors, especially in a market where affordability is a key driver of demand. Here are some reasons why investing in a budget hotel franchise, such as Motel 6 or Studio 6, could be a smart business move:
- Proven Business Model: Franchisees benefit from the strength of established brands like Motel 6, which comes with decades of brand recognition, a loyal customer base, and a reputation for affordable, clean lodging.
- Low Operating Costs: Budget hotels typically have lower overhead compared to luxury accommodations. The focus on essential services and streamlined operations means franchisees can maintain high occupancy rates while keeping costs manageable.
- Growing Demand: With increasing domestic travel, road trips, and budget-conscious consumers, the demand for affordable accommodations is projected to rise. Budget hotels also attract a diverse customer base, including families, business travelers, and solo travelers, providing a steady stream of potential guests.
- Support from Franchisees: Established budget hotel brands provide franchisees with comprehensive support, including marketing, technology systems, staff training, and operational guidelines. This allows franchisees to focus on providing excellent customer service and driving profitability.
- Expansion Opportunities: Many budget hotel brands offer flexible models that can work in various locations, including urban centers, suburban areas, and near highways. This versatility gives franchisees more options for growth and expansion.
The Future for Existing Motel 6 and Studio 6 Franchises
The acquisition of G6 Hospitality by Oravel Stays is poised to bring a new chapter of growth and innovation for existing Motel 6 and Studio 6 franchises. With OYO’s international experience and technology-driven approach to hospitality, current franchisees can expect several potential benefits:
- Technological Advancements: OYO is known for its full-stack technology platform that enhances the management of properties, guest bookings, and overall operations. Franchisees could benefit from advanced technology that simplifies day-to-day operations, reduces costs, and improves customer service.
- Global Brand Alignment: As Motel 6 and Studio 6 integrate with Oravel Stays’ global network, the brands are likely to see improved international recognition. This could attract more international guests who are already familiar with OYO properties, further boosting occupancy rates for franchisees.
- Continued Brand Strength: Motel 6 has been a household name in the U.S. for decades, and under OYO’s leadership, the brand’s core values of affordability and accessibility are expected to remain intact. Franchisees will continue benefiting from the brand’s strong market position and customer loyalty.
- Expansion Opportunities: With Oravel Stays planning to add 250 new properties by the end of 2024, there may be new opportunities for existing franchisees to expand their portfolios and capitalize on the brand’s growth.
- Improved Guest Experience: OYO’s focus on enhancing customer experience through its innovative hospitality models could lead to the introduction of new services and amenities, which would boost guest satisfaction and loyalty. This could directly contribute to the long-term success of franchisees.
The existing Motel 6 and Studio 6 franchises have a bright future ahead under Oravel Stays’ leadership. With new technology, brand recognition, and continued focus on delivering affordable accommodations, franchisees are well-positioned to grow their businesses and meet the evolving demands of budget travelers in the U.S. and beyond.
Conclusion: Motel 6 Bought By Indian Hotel Tech OYO
The acquisition of G6 Hospitality, including the Motel 6 and Studio 6 brands, by Oravel Stays (OYO) marks a pivotal moment in the budget hotel industry. For OYO, this is a strategic move to strengthen its foothold in the U.S. and expand its global portfolio. The deal underscores OYO’s ambition to become a leading player in the budget hospitality market by leveraging Motel 6’s well-established brand and nationwide presence.
For existing franchisees and customers, the acquisition promises to bring new opportunities. OYO’s tech-driven approach, combined with the trusted Motel 6 and Studio 6 names, creates potential for operational enhancements, improved guest experiences, and expanded global recognition. This acquisition highlights the resilience and growth potential of the budget hotel sector, particularly in an era where affordability and convenience continue to drive consumer demand.
Overall, OYO’s acquisition is set to usher in a new era for Motel 6, where the blending of traditional hospitality with modern technology will help both the brand and its franchisees adapt to the evolving needs of travelers in the U.S. and around the world. The future of Motel 6 and Studio 6 under OYO’s leadership looks promising, with potential for further expansion and innovation.