OYO To Invest $10 Mn In G6 Hospitality's Digital Assets

SUMMARY

Through this investment, the company aims to grow Motel 6 website and My6 application by strengthening the number of app installations by 4X

Last year, OYO’s parent Oravel Stays Ltd acquired G6 Hospitality from Blackstone Real Estate for $525 Mn (around INR 4382.72 Cr) in an all-cash transaction

As of 2024, OYO claims to offer over 40 integrated products and solutions to patrons who operate above 157K hotel and home storefronts in more than 35 countries

Ritesh Agarwal-led hospitality giant OYO is looking to invest $10 Mn (INR 86.6 Cr) to strengthen the digital assets of its recently-bought G6 Hospitality, the US-based operator of the Motel 6 and Studio 6 brands.

Last year, OYO’s parent Oravel Stays Ltd acquired G6 Hospitality from Blackstone Real Estate for $525 Mn (around INR 4382.72 Cr) in an all-cash transaction.

Through this investment, the company aims to grow Motel 6 website and My6 application by strengthening the number of app installations by 4X.

Additionally, it is looking to boost targeted digital campaigns in spotting customers actively searching for accommodations to improve booking conversions and deliver enhanced value to franchise partners, the company said in a statement.

The acquisition of G6 Hospitality was part of OYO’s effort to expand its footprint in the US. The company now operates over 320 hotels across 35 states. In recent times, the hospitality major is also looking to bolster its presence in Europe and the US as it earns higher revenues from these markets due to larger cheques.

As of 2024, OYO claims to offer over 40 integrated products and solutions to patrons who operate above 157K hotel and home storefronts in more than 35 countries including India, Europe, and Southeast Asia.

The company is looking to add more than 150 hotels in 2025 under the Motel 6 and Studio 6 brands, while strengthening its presence in key markets such as Texas, California, Georgia and Arizona.

OYO also announced its plans to invest £50 Mn (INR 448.36 Cr) in the UK over the next three years, earlier this month.

Notably, the company acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal, in August last year.

On the financial front, Inc42 reported that the hospitality giant’s profit after tax (PAT) jumped nearly 6X to INR 166 Cr in the third quarter ended December (Q3 FY25) from INR 25 Cr in the year ago period. Meanwhile, its revenue also increased 31% to INR 1,695 Cr in the quarter under consideration from INR 1,296 Cr in the year ago period.