Highlights
OYO’s Strategic Acquisition of G6 Hospitality
Global travel technology firm OYO has successfully acquired G6 Hospitality, which manages the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million. This transaction is expected to significantly boost OYO’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) to over Rs 2,000 crore ($238 million) in the fiscal year 2026.
Financial Projections Post-Acquisition
- Motel 6 is anticipated to generate an EBITDA exceeding Rs 630 crore ($75 million) in the next financial year, marking its first full year of integration.
- The acquisition will add around 1,500 franchised hotels in the United States and Canada to OYO’s portfolio, greatly enhancing its presence in North America.
- The combined entity is forecasted to achieve a Gross Booking Value of approximately $3 billion, with G6 Hospitality alone expected to contribute $1.7 billion.
Expansion in Europe
OYO has also strengthened its European footprint through strategic acquisitions under OYO Vacation Homes (OVH). With over 184,000 properties across various regions, including Europe, the US, the UK, Southeast Asia, and the Middle East, Europe is one of OYO’s vital markets.
Key Acquisitions in Vacation Rentals
- OYO’s portfolio features DanCenter, a vacation home management company that oversees 12,000 properties in Denmark, Sweden, Norway, and Germany. Since acquiring DanCenter in 2019, the company has successfully doubled its revenue and market share, becoming a leading provider of vacation rentals in Denmark.
- OVH operates brands like Belvilla, which manages 65,000 holiday homes across 20 countries, and Traum-Ferienwohnungen, an online platform offering 100,000 holiday properties.
- In 2022, OYO further bolstered its European presence by acquiring Direct Booker in Croatia, managing 3,200 homes, followed by the recent acquisition of CheckMyGuest, a premium vacation rental firm based in Paris.
Enhancing Guest Experience
The integration strategy encompasses advanced technology implementations, with OYO’s dedicated team of 300 product specialists poised to improve both guest experience and operational efficiency.