OYO To Invest $10 Mn In G6 Hospitality’s Digital Assets
- OYO is investing $10 Mn to enhance the digital assets of G6 Hospitality, aiming to increase Motel 6 app installations by 4X.
- OYO’s profit after tax (PAT) surged nearly sixfold to INR 166 Cr in Q3 FY25 from INR 25 Cr in the same period the previous year.
Ritesh Agarwal-led hospitality giant OYO is set to invest $10 Mn (INR 86.6 Cr) to enhance the digital assets of its recently acquired G6 Hospitality, the US-based operator of the Motel 6 and Studio 6 brands.
Last year, OYO’s parent company, Oravel Stays Ltd, acquired G6 Hospitality from Blackstone Real Estate for $525 Mn (around INR 4,382.72 Cr) in an all-cash transaction.
With this new investment, OYO aims to strengthen the Motel 6 website and My6 application, targeting a fourfold increase in app installations.
Additionally, the company plans to boost targeted digital campaigns to attract customers actively searching for accommodations.
This initiative is expected to enhance booking conversions and provide greater value to franchise partners, OYO stated in a release.
The acquisition of G6 Hospitality aligns with OYO’s broader strategy to expand its footprint in the US.
Currently, the company operates over 320 hotels across 35 states. OYO is also intensifying its presence in Europe and the US, as these markets yield higher revenue through larger transactions.
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As of 2024, OYO claims to offer over 40 integrated products and solutions, supporting more than 157K hotel and home storefronts in over 35 countries, including India, Europe, and Southeast Asia.
The company plans to add over 150 hotels in 2025 under the Motel 6 and Studio 6 brands, focusing on key US markets such as Texas, California, Georgia, and Arizona.
Earlier this month, OYO announced plans to invest £50 Mn (INR 448.36 Cr) in the UK over the next three years.
Additionally, in August last year, the company acquired Paris-based premium rental homes company Checkmyguest for INR 230 Cr ($27.4 Mn) in a cash and stock deal.
On the financial front, Inc42 reported that OYO’s profit after tax (PAT) surged nearly sixfold to INR 166 Cr in Q3 FY25 from INR 25 Cr in the same period the previous year.
Revenue also saw a 31% increase, reaching INR 1,695 Cr in the quarter, compared to INR 1,296 Cr a year ago.
Edited By Annette George
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