The Kabani Hotel Group’s Post

🏨 Motel 6 Sold to Oyo: A New Chapter for an Iconic Brand 🚪 In a significant move for the hospitality industry, Oyo, the Indian hotel giant, has agreed to acquire Motel 6 for $525 million. This acquisition marks a strategic step in Oyo’s U.S. expansion plans. Here are the key details: 🏨 About Motel 6 * Established: 62 years ago in Santa Barbara, California. * Brand Recognition: One of America’s most recognizable budget lodging brands with approximately 1,500 locations in the U.S. and Canada. * Name Origin: Initially offered rooms for just $6 a night. 💼 Transaction Details * Seller: Blackstone, which purchased Motel 6 in 2012 for $1.9 billion. * Expected Closing: Q4 2024. * Financial Impact: Blackstone has tripled investors’ capital, generating over $1 billion in profit from the sale. 🌍 Oyo's Growth Journey * Founded: About a dozen years ago, rapidly becoming one of the world's largest hotel chains. * Current Presence: Operates 320 hotels across 35 states in the U.S. * Recent Challenges: Faced setbacks due to COVID-19 and quality control issues but has refocused its efforts on U.S. growth. 📈 Future Plans * Integration: Motel 6 will operate as a separate entity under Oyo’s management. * CEO Insight: Gautam Swaroop emphasized the brand's strong recognition and financial profile as key assets for future growth. 📊 Market Context * Economy Hotel Trends: The U.S. hotel industry is currently facing challenges, including declining occupancy and stagnant room rates. * Average Room Rate: Economy-class hotels averaged $79 per night in August 2024, a slight decline from the previous year but up 14% compared to five years ago. * Future Outlook: Analysts expect a modest improvement in 2025, driven by infrastructure spending and increased demand from traveling construction crews. 🔑 Why This Matters * This acquisition reflects Oyo's ambition to strengthen its footprint in the U.S. and adapt to changing market dynamics. * Budget hotel chains like Motel 6 are well-positioned to capture market share through loyalty programs and online visibility, even as the economy segment faces pressures. As Oyo ramps up its presence in the U.S. market, the future looks promising for Motel 6 and its budget-conscious travelers. 🌟✨ https://lnkd.in/gscwzvu2

Motel 6, the iconic US budget hotel chain, is set to be acquired by Indian hotel operator OYO in an all-cash deal valued at $525 million, according to the companies. Blackstone, the owner of Motel 6's parent company, expects the deal to close by year-end, including Motel 6's subsidiary brand, Studio 6. Oyo, which entered the U.S. market in 2019, now manages over 300 hotels nationwide. Motel 6, founded in 1962 in Santa Barbara, California, operates around 1,500 hotels across the US and Canada under Motel 6 and Studio 6 brands. Read full story here: https://lnkd.in/gKHpgHpf #acquisition #hospitality #hotels #news #latestnews LinkedIn News India Linkedin News Ashu Agrawal

OYO's Acquisition of Motel 6: A Shift in the Budget Lodging Landscape India-based OYO Hotels has acquired Motel 6, the iconic budget-friendly hotel chain, in a $525 million deal. This acquisition marks a significant shift in the budget lodging landscape, as OYO brings its technology-driven approach and focus on operational efficiency to the well-established Motel 6 brand. The move is expected to bring new opportunities for growth and innovation to Motel 6, potentially enhancing its offerings and strengthening its value proposition for guests. What are your thoughts on the impact of this acquisition on the budget lodging market? Share your insights in the comments below. #Motel6 #OYO #HotelAcquisition #BudgetLodging #Hospitality #Travel #Innovation #Technology #WentWorld https://lnkd.in/eEyG7cch

A Historic Day for OYO & the Hospitality Industry 🏨🌎 Today, we celebrate a monumental milestone as OYO officially closes the acquisition of G6 Hospitality, the parent company of the iconic Motel 6 and Studio 6 brands. With this acquisition, OYO not only expands its U.S. footprint but marks a new era of growth. Motel 6, one of America’s most recognizable lodging brands, has been a cornerstone for budget-conscious travelers for over 62 years, with 1,500+ locations across the U.S. and Canada. At OYO, we are bringing together the best of two powerful worlds: ✅ G6's unmatched brand legacy and vast network across North America. ✅ OYO's proven strengths in technology and revenue management capabilities, backed by our solid global presence and robust shared services team in India. This synergy will redefine what’s possible in the budget-hotel segment, delivering exceptional value for travelers and partners alike. We believe this moment will be remembered as a game-changer in OYO’s journey toward global leadership in hospitality. This is just the beginning of an exciting road ahead! Many Congratulations to the whole OYO team including the leadership team- Ritesh Agarwal Gautam Swaroop Ankit Tandon Dinesh Ramamurthi Rakesh Prusti Abhinav Sinha Anuj Tejpal Rakesh Kumar Sonal Sinha Nikhil Heda Article reference- https://lnkd.in/eHpjQYMT #OYO #Motel6 #G6Hospitality #InnovationInHospitality #GlobalGrowth

Article of The Week: By David Eisen | October 9, 2024 | HOTELS magazine A yo-yo 2024 for the hotel industry has brand leaders ready, anxious for the year ahead PHOENIX — The temperature of the hotel industry ran hot at the JW Marriott Phoenix Desert Ridge, and it had nothing to do with the suffocating heat outside. The annual Lodging Conference confab is one of the last chances of the year for the collective hotel industry to offer up its takes on what’s now and what’s to come and it is never shy to lay out the truth.    A CEO-led panel at the conference elicited brand opinions, which all looked for a brighter future after a ho-hum 2024, one that Joe Berger, president and CEO of BRE Hotels & Resorts, described as, “Ugh!” citing soft RevPAR and heavy inflation. But not all shared his sentiment. Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts, which franchises brands mainly in the economy and lower-midscale segments, referred to 2024 as the year where the smart money bet big on select-service and extended-stay accommodations, which are where the bulk of Wyndham’s franchise assets lie, including its Echo Suites brand, a big economy bet on the longer-stay space. Within the pure economy space sits G6 Hospitality and its legacy Motel 6 brand, which, along with Studio 6, were agreed to be sold to Indian upstart Oyo Hotels in September in an all-cash transaction valued at $525 million. Less than a month later, Julie Arrowsmith, president and CEO of Motel 6 and Studio 6, didn’t have too much more to say about the deal, other than “we are in learning mode.” Meanwhile, she said after some occupancy challenges for the segment, the economy space is forging ahead and anticipates growth. Read More: https://lnkd.in/e9CTc7DB

#HospitalityIPOs | Recent IPOs such as Apeejay Surendra Park Hotels, Chalet Hotels, Samhi Hotels and Juniper Hotels evoked strong response from investors. @YashJain88 digs into the trend and what the future looks like #CNBCTV18 #Hotels #IPOs #Hospitality

Breaking News 🚨 According to Costar, "Oravel Stays, the parent company of India-based Oyo Hotels & Rooms, has agreed to acquire G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash transaction. G6 Hospitality is the parent company of the Motel 6 and Studio 6 economy hotel brands. The deal is expected to close in the fourth quarter this year. Oyo exploded on the hotel landscape in 2012 as a budget brand founded in India by Ritesh Agarwal. The company's economy hotel portfolio expanded across India quickly, then added hotels in Europe. Oyo came to the Americas in 2019, and now operates more than 320 hotels across 35 states in the U.S." #hospitality #hotel #california #motel6 #studio6 #blackstone #ushotels #breakingnews #commercialrealestate

Some hotel news from 🇺🇸… US based PM Hotel Group has merged with with Sightline Hospitality adding 22 properties (open and in the pipeline) to PM Hotel Group’s portfolio. Sightline’s hotel brands, including nature-focussed RESET and outdoor adventure-led evo Hotels, will join PM Hotel Group alongside their existing Modus by PM Hotel Group lifestyle division. Geographically, the merger also expands PM’s footprint in the US mountain regions, along the West Coast, and marks the group’s debut in the Hawaiian Islands. The newly merged entity will continue to operate under the PM Hotel Group name, which now manages approximately 85 hotels and resorts across the United States. Joseph Bojanowski, president of PM Hotel Group, said: “Joining forces with Sightline Hospitality represents a significant milestone in PM Hotel Group’s ongoing mission to elevate hospitality management standards.” Kirk Pederson, president of Sightline Hospitality, said: “At Sightline Hospitality, the core mission has always been to craft exceptional and immersive experiences for our guests. This merger with PM Hotel Group represents a strategic opportunity to combine our strengths and redefine the boundaries of hospitality excellence.” #hotels #hospitality 📷 Sightline Hospitality/RESET

#mywyndham We can close this chapter!

Hyatt Hotels Corporation is currently in exclusive discussions about a potential acquisition of Playa Hotels & Resorts N.V., a noteworthy $1.2 billion resort operator recognized for its luxurious all-inclusive resorts in Mexico. This strategic move underscores Hyatt's interest in broadening its brand offerings and fits snugly within its asset-light business model, showcasing strategic foresight in navigating industry challenges. Playa Hotels & Resorts operates 24 high-end resorts under the well-known Hyatt Ziva and Hyatt Zilara brands. With Hyatt already holding a 9.99% stake in Playa, this potential acquisition indicates a deepening of their existing partnership. This move comes as the global hospitality industry deals with volatile travel demand due to economic uncertainties in key markets such as the U.S. and China. Despite these sector challenges, both companies received a favorable market reaction, evidenced by a significant 11% rise in Playa’s shares and a 1% increase in Hyatt’s stock upon the announcement. These exclusive talks open the door for Hyatt to strengthen its stance in the all-inclusive resort segment, pursuing strategies that aim for sustainable fee streams. As shifting consumer behaviors and macroeconomic trends continue to shape the landscape, strategic mergers and acquisitions like this could become pivotal in charting the path for future growth in the hospitality sector. Hyatt’s strategic maneuvers can set a precedent and potentially reshape opportunities within the industry, aligning with evolving market demands and contributing to long-term success. #Hyatt #PlayaHotels #HospitalityIndustry #Acquisitions #StrategicGrowth #AllInclusiveResorts #AssetLightModel #TravelDemand #MarketTrends #ConsumerBehavior #EconomicUncertainty #ResortOperator #LuxuryResorts #IndustryChallenges #HyattZiva #HyattZilara #Investments #BusinessStrategy #MergersAndAcquisitions #SectorGrowth #FutureTrends https://lnkd.in/d7mkxpVn