New Delhi: According to documents, it is anticipated that the EBITDA of OYO, a travel technology platform going public, will exceed Rs 2,000 crore in 2025-26, with a significant contribution from the American budget hotel chain Motel 6 to its revenue. The tech unicorn in the travel industry predicts that the incorporation of Motel 6 will contribute more than Rs 630 crore to its EBITDA in the upcoming fiscal year, marking its first complete year of being merged.
The travel tech company plans to submit its IPO documents again to SEBI and has renegotiated its $450 million Term Loan B at a reduced interest rate. On Saturday, OYO revealed a deal to purchase the Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million in a cash-only transaction.
Oravel Stays, the company that owns OYO, announced its intention to purchase G6 Hospitality, the top economy lodging franchisor and owner of Motel 6 and its sister hotel brand, Studio 6 The deal is anticipated to be finalized in the fourth quarter of 2024. Sources have indicated that OYO plans to use a combination of debt and equity to fund the purchase. It will use USD 250 million from the recently completed fundraising and current cash reserves.
The number of hotels in the travel tech chain increased by 5,165 from the end of FY23 to the end of FY24, showing a growth of 40 per cent. The purchase will increase the number of hotels by 1,500, bringing the total to almost 20,000. A source mentioned that with an average of 110 rooms per hotel in Motel 6 and a higher room rent, it will greatly increase OYO's revenue. Motel 6 has 1,500 franchised hotels in the US and Canada.
FIRST Business Portal addressing the potential of business capability of North East Region.
