Motel 6, the economy budget motel that has existed for six decades, announced that it will be acquired by Oyo, an Indian-based travel company, in a multi-million dollar sale.Friday outlining that the deal would be an all-cash transaction totaling $525 million. As part of the multimillion-dollar transaction, the company will also sell its Studio 6 brand, its chain of extended-stay hotels.
“Motel 6’s strong brand recognition, financial profile and network in the US, combined with Oyo’s entrepreneurial spirit will be instrumental in charting a sustainable path forward for the company which will continue to operate as a separate entity," Swaroop said.Jan Freitag, an analyst with real estate data firm CoStar, told NPR that occupancy for economy-class hotels in the first eight months of this year was about 54.2%, down 2.2% from a year ago.