The iconic motel chain sold to an Indian company for half a billion

New York-based investment firm Blackstone, which owns Motel 6’s parent company, G6 Hospitality, announced Friday that the deal will be an all-cash deal valued at $525 million.

The transaction will also include the sale of the Studio 6 motel brand, which caters to customers seeking extended stays. The deal is expected to close by the end of the year.

Oyo, which launched in India a little over a decade ago, has expanded its footprint in the US in recent years. The company says it currently operates 320 hotels in 35 states and aims to add 250 more this year.

“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, head of OYO’s international division, said in a statement.

Blackstone had bought Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has invested heavily in the brand and pursued a strategy that turned the chain into a franchise.

“This transaction is a great result for investors and is the culmination of an ambitious business plan that has more than tripled our investors’ capital and generated more than $1 billion in profit during the holding period,” Rob Harper, Head of Blackstone Real Estate Asset Management. America, said in a statement.

Under the agreement, Oyo-owned Oravel Stays will acquire G6 Hospitality.