Sept. 22 (UPI) — Motel 6, known for its bare-bones motel rooms, low prices and blue sign emblazoned with a red “6,” has been sold for $525 million to India-based hotel operator Oyo, Blackstone Real Estate has announced.
Oyo, a global travel company, owns 320 hotels in 20 states, and is now adding G6 Hospitality, Motel 6’s parent company, to its portfolio. It has been expanding its footprint in the United States in recent years, and is expected to add an additional 250 properties this year.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, Oyo International CEO, said in a release Friday when the deal was announced.
“Motel 6’s strong brand recognition, financial profile and network in the U.S., combined with Oyo’s entrepreneurial spirit, will be instrumental in charting a sustainable path forward for the company, which will continue to operate as a separate entity.”
There are about 1,500 Motel 6 and Studio 6 properties in Canada and the United States. They have undergone substantial renovation and updating under Blackstone in preparation for the sale. Motel 6’s franchise network produces gross room revenues of $1.7 billion, according to Blackstone.
“We are grateful for our successful partnership with Blackstone and the transformation that has positioned us well for this new chapter,” said Julie Arrowsmith, president and CEO at G6 Hospitality, which is owned by Blackstone.
“Oyo’s innovative approach to hospitality will allow us to enhance our offerings and great value to our guests while maintaining the iconic Motel 6 brand that travelers have trusted for over six decades,” she continued.
Motel 6 became widely known for its marketing catchphrase “We’ll leave the light on for you,” which was ad-libbed by Alaska radio announcer Tom Bodett in 1986. Bodett was the company’s first and only spokesman.