Motel 6, the budget motel chain, announced last week that it was being acquired in a half-a-billion-dollar deal by the Indian hotel operator Oyo.
The New York-based investment firm Blackstone, which owns Motel 6’s parent company, G6 Hospitality, shared on Friday that the deal would consist of an all-cash transaction for $525 million.
Included in the sale will be the Studio 6 motel brand, which deals with customers who are looking for extended stays.
“This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO’s international division chief, said in a statement.
The company acquiring the iconic motel brand, Oyo, launched in India just over a decade ago and has since been rapidly growing, including venturing into the U.S. over the past few years.
Currently, the company reportedly owns and operates around 320 hotels across 35 states. It says it is looking to add 250 more this year.
Motel 6 and Studio 6 were purchased by the giant investment firm Blackstone in 2012 in a deal that was priced at $1.9 billion.
Since its acquisition, Blackstone says it has invested heavily into Motel 6, including by converting the chain into a franchise.
“This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement.
The deal is expected to be completed by the end of the year.