Blackstone to sell Motel 6 chain, parent company for $525M

A hotel operator based in India is buying a classic piece of Americana — budget motel chain Motel 6.Oravel Stays, the parent company of global travel technology company Oyo, will pay current owner Blackstone $525 million for franchisor G6 Hospitality and its Motel 6 and Studio 6 extended-stay brands, the New York-based investment firm said.Blackstone purchased G6 in 2012 for $1.9 billion and it has since generated “over $1 billion in profit,” Rob Harper, head of Blackstone Real Estate Asset Management Americas said in a news release.G6 has a large stake in the economy lodging market, with gross room revenue of $1.7 billion per year.Motel 6’s franchise network includes more than 1,450 hotels in 49 states and five Canadian provinces — generally close to airports, freeways and other thoroughfares.

Studio 6 includes more than 200 properties, in places like Atlanta, Dallas, Houston, Seattle and Canada.Oyo already operates more than 320 hotels across 35 states, mainly in the south and west but also including Oyo Times Square, and aims to add about 250 more this year.The Motel 6 deal is slated to close by year’s end....