Hospitality giant Oyo, backed by SoftBank, has announced its acquisition of G6 Hospitality, the operator behind the popular Motel 6 and Studio 6 brands. The $525 million deal marks a significant expansion for Oyo in the US and Canada, adding 1,500 franchised hotels to its portfolio. This acquisition not only strengthens Oyo’s foothold in North America but also aligns with its strategic vision for growth in key global markets.  

 1. Boosting Financial Performance  
Oyo expects the integration of G6 Hospitality to significantly boost its financial performance. The combined entity is projected to achieve a gross booking value of $3 billion, with G6 Hospitality contributing $1.7 billion. Additionally, the deal is estimated to increase Oyo’s EBITDA to over ₹2,000 crore by FY26, with G6 alone expected to generate more than ₹630 crore in EBITDA in its first full financial year post-acquisition.  

 2.Strategic Value Creation  
Ankit Tandon, Oyo’s Global Chief Business Officer and Head of Mergers and Acquisitions, highlighted the strategic importance of this acquisition. He noted, “This acquisition adds immense value through the strong brand equity of Motel 6, opportunities for further growth, and significant synergies. Our success in Europe, where we nearly tripled EBITDA for our vacation homes business, has set a clear path for replicating similar outcomes.”  

 3. A Journey of Global Expansion  
Oyo’s aggressive growth strategy has already seen substantial gains in Europe and other regions. The company manages over 1,84,000 properties worldwide, spanning Europe, the US, the UK, Southeast Asia, and West Asia. Under its Oyo Vacation Homes (OVH) brand, the company has made several strategic acquisitions, including Denmark-based DanCentre, which it acquired in 2019. DanCentre has since doubled its revenue and market presence, demonstrating the effectiveness of Oyo’s integration strategies.  

 4. Diversified Portfolio in Europe  
Oyo’s European portfolio under the OVH brand includes prominent names like Belvilla, managing 65,000 holiday homes across 20 countries, and Traum-Ferienwohnungen, which lists 1,00,000 homes on its vacation rental platform. The company has also expanded in Croatia with its 2022 acquisition of Direct Booker, adding 3,200 properties to its offerings. Earlier this year, it further strengthened its position in Europe by acquiring Paris-based CheckMyGuest, a premium vacation rental provider.  

 5. IPO Aspirations and Profit Milestone  
The acquisition comes at a pivotal time for Oyo, as the company prepares for its initial public offering (IPO). The deal follows Oyo’s announcement of its first-ever net profit of ₹229 crore in FY24, underscoring its improving financial health and operational efficiency.  

 6.The Road Ahead  
Oyo’s latest move solidifies its position as a global leader in the hospitality sector. By leveraging synergies from its acquisitions and maintaining a focus on high-growth markets, the company aims to deliver long-term value to its stakeholders while reshaping the global hospitality landscape.