Oyo Wraps Up Acquisition of G6 Hospitality for Whopping $525 Million

OYO has successfully wrapped up the acquisition of G6 Hospitality for a whopping $525 million. This all-cash transaction marks a significant milestone for the Softbank-backed startup, opening doors to wider opportunities and increased market presence across North America. 

OYO’s Profit Milestones 

The hospitality startup has made a remarkable financial performance with its first-ever profit after tax of approximately Rs 229 crore in FY24. With a subsequent profit of Rs 132 crore in Q1 FY25, the company has been on a steady trajectory towards sustainable growth and profitability.

The Strategic Value of the G6 Hospitality Acquisition

Moreover, by integrating G6 Hospitality's popular brands, Motel 6 and Studio 6, into its portfolio, OYO aims to utilize the strengths and market presence of these established franchises for accelerated growth and enhanced customer experience. The acquisition is expected to speed up OYO's earnings before interest, taxes, depreciation, and amortization (EBITDA) to over Rs 2,000 crore in FY26, with Motel 6 contributing a significant EBITDA of Rs 630 crore in the upcoming financial year.

Ankit Tandon, Global CBO and Head of M&A at OYO expressed optimism about the acquisition's potential to drive value creation, citing G6's robust brand franchise in the US as a key asset for synergistic growth.

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Tandon said the acquisition would be “value accretive” because of G6’s strong brand franchise in the US, and potential for growth and synergies.

“Our success in Europe, where we nearly tripled EBITDA through strategic synergies for our vacation homes business, has given us a clear roadmap for value creation,” the Global CBO said.

Incidentally, the hospitality startup has expanded its European presence through strategic acquisitions under OYO Vacation Homes (OVH).

OYO’s portfolio includes DanCenter, a vacation home management company managing 12,000 properties across Denmark, Sweden, Norway, and Germany.

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