Oravel Stays, the parent company of OYO, has completed its previously announced acquisition of G6 Hospitality from Blackstone Real Estate for $525 million.
The Indian company replaced the majority of the G6 executive team, including CEO Julie Arrowsmith.
Oyo plans to add 150 hotels to the Motel 6 and Studio 6 brands in 2025 and strengthen the brands' presence in key markets. The addition gives Oyo's portfolio a stronger U.S. foothold.
OYO plans to accelerate the growth of G6 Hospitality's operations, focusing on technology integration, property upgrades, and market expansion.
OYO has outlined its vision for the future of Motel 6 and Studio 6, focusing on growth while preserving the brands' core values, distinct identity and leveraging the advantages of a shared corporate structure. All existing franchise agreements, including exclusivity rights, will be honored, and the current franchise success teams will continue their operations without disruption.
OYO plans technological advancements to enhance the guest experience and operational efficiency. The company will take the support of its 300-member team of product specialists including software engineers, product managers, and designers to develop and implement better digital solutions, according to Oyo. These improvements include enhanced mobile and web booking experience and options of dynamic pricing capabilities that can optimize rates across room types throughout the year.
In the distribution and revenue growth area, OYO plans to develop a broader network of distribution partners beyond traditional online travel agencies, while simultaneously strengthening direct booking channels and corporate booking demand.
Restructuring
The company has started the restructuring process to drive synergies, growth and transformation. Sonal Sinha has been appointed as the CEO. Tina Burnett will continue as chief development officer along with several others at G6. The new leaders coming in include Nishant Boorla and Anuj Ladha who will head brand performance, Manas Mehrotra as central operations head, Subhankar Choudhary as head – revenue, e-commerce and sales. Key leaders in the global capability center of OYO include Rakesh Prusti as group general counsel, Dinesh R as group CHRO, Rakesh Kumar as group CFO, Shashank Jain as group CTO, Nitin Thakur as head – global strategic alliances and communications and Aparna Rathore as global procurement head. Sonal Sinha will report to Gautam Swaroop, CEO - OYO International.
Several executive committee members will be leaving G6, including Arrowsmith, who served as president and CEO; Adam Cannon, chief brand officer; Farah Bhayani, general counsel and chief compliance officer; Perry Ping, chief financial officer; Mary Fregia, chief human resource officer; and Brent Haines, chief information officer, effective immediately.
According to a release, the company plans to hire team members primarily in the franchisee facing functions while consolidating and rightsizing some functions to create better synergies across the organization. The company's franchise development and support and safety and security organization remains fully intact. As part of the integration process, OYO and G6 will combine some parts of the corporate operations with OYO’s existing global excellence teams.
“We will continue to invest in skills that are unique and critical to the G6 business such as supply, account management, corporate Sales, Brand Standards, Offline marketing, Safety & Security. Over the years, OYO has been able to successfully leverage already developed capabilities in India on Technology, Revenue Management, Ecommerce, Procurement, Legal, Finance, and HR and will enable this for the G6 business too.