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Global travel tech company OYO has announced a $10 million investment aimed at enhancing the digital assets of G6 Hospitality. This is the strategic move to increase its presence in the US.
G6 Hospitality is the parent company of the well-known Motel 6 and Studio 6 brands. This initiative underscores OYO's commitment to leveraging technology to improve customer engagement and streamline operations across its expanding portfolio.
Background: OYO's Acquisition of G6 Hospitality
In September 2024, OYO acquired G6 Hospitality from Blackstone Real Estate for $525 million in an all-cash transaction. This acquisition marked a significant milestone for OYO, providing a substantial foothold in the U.S. hospitality market.
G6 Hospitality, renowned for its Motel 6 and Studio 6 brands, boasts a franchise network generating gross room revenues of $1.7 billion, offering a strong fee base and cash flow.
Enhancing Digital Platforms
The $10 million investment is directed towards upgrading G6 Hospitality's digital platforms. The focus is on enhancing the Motel 6 website and the My6 mobile application. OYO aims to increase app installations by 4X before the summer season using advanced digital targeting strategies. The approach targets high-intent customers through direct partnerships with Google and & Microsoft.
OYO plans to use this investment to run targeted digital campaigns, focusing on customers actively looking for accommodations. By leveraging data-driven marketing, the company aims to:
A) Provide more value to its franchise partners.
B) Increase booking conversions.
This approach not only helps attract more customers but also ensures G6 continues to offer excellent guest experiences.
Statement from Leadership
"The investment underscores G6's commitment to supporting its franchise network by driving direct bookings and reducing dependency on third-party platforms," said Shashank Jain, Head of Online Revenue, at G6 Hospitality.
Expansion Plans
Beyond digital enhancements, OYO plans to accelerate G6 Hospitality's growth by adding over 150 hotels in 2025 under the Motel 6 and Studio 6 brands. This expansion is designed to boost the brand's presence in major markets like Texas, California, Georgia, and Arizona.
Technological Advancement
G6 Hospitality has partnered with HotelKey, a hospitality technology provider. This will help Oyo to enhance technological capabilities across its network of properties in the U.S. and Canada.
Further, this collaboration is expected to improve operational efficiency and guest experiences, aligning with OYO's tech-driven approach to hospitality.
OYO's Strong Financial Growth
Financially, Inc42 reported that the hospitality giant's profit after tax (PAT) surged nearly sixfold to INR 166 Cr in Q3 FY25, compared to INR 25 Cr in the same quarter last year. Additionally, its revenue saw a 31% increase, rising from INR 1,296 Cr to INR 1,695 Cr during the same period.
OYO's $10 million investment in G6 Hospitality's digital assets represents a strategic effort to integrate technology with hospitality, enhancing customer experiences and operational efficiency. As the company expands its footprint in the U.S., these digital enhancements are poised to play a pivotal role in attracting and retaining customers.
This will ultimately contribute to OYO's growth and success in the competitive hospitality landscape.
Oyo Planning To Launch IPO In 2025
OYO is preparing to launch its IPO. The NBFC has filed a DRHP (Draft Red Herring Prospectus) with SEBI. OYO IPO aims to raise ₹8,430 crores. This will include an offer for sale of about Rs. 1,430 crores and a fresh issue equity share sale of Rs. 7,000 crores.
Check the detailed Oyo IPO analysis (click here).
Is It Possible To Buy OYO Shares Before IPO?
Currently, Oyo is not listed on the stock market. However, Oyo stock is actively traded in the unlisted share market. Investors can buy pre-IPO shares and own Oyo shares before they get traded in the listed market.
Interested investors can buy Oyo unlisted shares by clicking here. Check other pre-IPO shares at Stockify.
Oyo Unlisted Share FAQs
Q1: Is OYO getting listed in the stock market?
Oyo has filed its DRHP (Draft Red Herring Prospectus) with SEBI, and it is estimated to be listed by March 25.
Q2: Why did OYO withdraw the IPO?
Oyo withdrew its application due to material changes in finance and its plan to raise money privately.
Q3: Is it legal to buy unlisted shares of OYO in India?
Yes, this is 100% legal and safe to buy unlisted shares of Oravel Stays Ltd (OYO Rooms). However, this is applicable when you buy Oravel Stays Ltd (OYO Rooms) unlisted shares from reliable and known unlisted share dealers. You can request a quote or trade online at Stockify, we are ready to assist you.
