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OYO Completes Acquisition of G6 Hospitality, Plans to Add Over 150 Hotels by 2025

News provided by news direct2024-12-17

--News Direct--

Oravel Stays, the parent company of the global travel technology company OYO, today announced that it has completed its previously announced acquisition of G6 Hospitality, the leading economy lodging franchisor and parent company of the iconic Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million.

Additionally, OYO plans to accelerate the growth of G6 Hospitality's operations, focusing on technology integration, property upgrades, and market expansion. OYO plans to add over 150 hotels in 2025 as part of the Motel 6 & Studio 6 brands. This is expected to strengthen the brands' presence in key markets.

OYO has outlined its vision for the future of Motel 6 and Studio 6, focusing on growth while preserving the iconic brands' core values, distinct identity and leveraging the advantages of a shared corporate structure. OYO will maintain and strengthen the Motel 6 and Studio 6 brands as they command a strong brand recognition and loyal customer base built over decades. All existing franchise agreements, including exclusivity rights, will be honored, and the current franchise success teams will continue their operations without disruption.

OYO plans technological advancements to enhance the guest experience and operational efficiency. The company will take the support of its 300-member strong team of product specialists including software engineers, product managers, and designers to develop and implement better digital solutions. These improvements include enhanced mobile and web booking experience and options of dynamic pricing capabilities that can optimize rates across room types throughout the year.

In the distribution and revenue growth area, OYO plans to develop a broader network of distribution partners beyond traditional online travel agencies, while simultaneously strengthening direct booking channels and corporate booking demand.

The company has started the restructuring process to drive synergies, growth and transformation. Sonal Sinha has been appointed as the CEO. Tina Burnett will continue as Chief Development Officer along with several others at G6. The new leaders coming in include Nishant Boorla & Anuj Ladha who will Head Brand Performance, Manas Mehrotra as Central Operations Head, Subhankar Choudhary as Head – Revenue, E-commerce & Sales. Key leaders in the Global Capability Center of OYO include Rakesh Prusti as Group General Counsel, Dinesh R as Group CHRO, Rakesh Kumar as Group CFO, Shashank Jain as Group CTO, Nitin Thakur as Head – Global Strategic Alliances & Communications and Aparna Rathore as Global Procurement Head. Sonal Sinha will report to Gautam Swaroop, CEO - OYO International.

As part of this transition, several Executive Committee members will be moving on to new opportunities. These leaders include Julie Arrowsmith, who served as President and CEO; Adam Cannon, Chief Brand Officer; Farah Bhayani, General Counsel and Chief Compliance Officer; Perry Ping, Chief Financial Officer; Mary Fregia, Chief Human Resource Officer; and Brent Haines, Chief Information Officer. These changes will take effect immediately. These executives have played pivotal roles in strengthening the brands and positioning them for future growth. The company extends its gratitude for their dedication and leadership throughout their tenure.

OYO is implementing strategic changes to enhance operational efficiency. The company plans to hire team members primarily in the franchisee facing functions while consolidating and rightsizing some functions to create better synergies across the organization. The company's franchise development & support and safety & security organization remains fully intact. As part of the integration process, OYO and G6 will combine some parts of the corporate operations with OYO’s existing global excellence teams.

Gautam Swaroop, CEO, OYO International,said, “We will continue to invest in skills that are unique and critical to the G6 business such as Supply, Account Management, Corporate Sales, Brand Standards, Offline marketing, Safety & Security. Over the years, OYO has been able to successfully leverage already developed capabilities in India on Technology, Revenue Management, Ecommerce, Procurement, Legal, Finance, and HR and will enable this for the G6 business too.”

About OYO

OYO is a global platform that empowers entrepreneurs and small businesses with hotels and homes by providing full-stack technology products and services that aim to increase revenue and ease operations; bringing easy-to-book, affordable, and trusted accommodation to customers around the world. OYO offers 40+ integrated products and solutions to patrons who operate over 185K hotel and home storefronts in more than 35 countries including India, Europe and Southeast Asia.

For more information, visit here www.oyorooms.com.