OYO has announced a significant investment of $10 million (approximately INR 87 crore) to advance the digital infrastructure of G6 Hospitality, the operator of Motel 6 and Studio 6 in the United States. This funding will focus on enhancing Motel 6’s website and the My6 app, with the ambitious goal of quadrupling app downloads before the summer season.
1. Targeted Digital Marketing for Higher Conversions
The investment includes implementing sophisticated digital targeting strategies to attract high-intent travelers. Collaborating with leading digital platforms such as Google and Microsoft, OYO aims to refine marketing efforts to convert more users into direct bookings. This approach will help G6 Hospitality strengthen its online presence and reduce reliance on third-party booking platforms.
2. Driving Value for Franchise Partners
Shashank Jain, Head of Online Revenue at G6 Hospitality, emphasized the importance of efficient marketing spend, stating, “Our strategy is to target users most likely to book, ensuring optimal resource utilization and maximizing benefits for franchise partners.” This initiative aligns with G6 Hospitality's vision to empower its franchise network by driving direct traffic and improving profitability.
3. Strategic Growth Post-Acquisition
The digital investment is part of OYO's broader plans for G6 Hospitality, which it recently acquired from Blackstone Real Estate for $525 million. Post-acquisition, OYO is focused on expanding G6’s footprint by adding over 150 new properties under the Motel 6 and Studio 6 brands in 2025. Expansion efforts will prioritize key markets like Texas, California, Georgia, and Arizona while maintaining the brands’ identity and values.
4. Strengthening Operational Technology
In parallel with digital initiatives, G6 Hospitality has partnered with HotelKey to enhance technological capabilities across its properties in the US and Canada. This collaboration aims to streamline operations and improve guest experiences, ensuring a seamless stay for travelers.
Conclusion
OYO’s $10 million investment underscores its commitment to modernizing G6 Hospitality’s digital platforms and driving growth. By leveraging advanced marketing strategies and technological upgrades, the company aims to strengthen direct bookings, support franchise partners, and solidify the Motel 6 and Studio 6 brands’ positions in the competitive hospitality market.