OYO, the travel tech platform, is expected to post a leap in EBITDA of over Rs 2,000 crore by 2025-26, primarily due to its acquisition of the American budget hotel chain Motel 6, as indicated by company documents.

The firm is expected to refile its IPO papers with the Securities and Exchange Board of India (SEBI) after refinancing its existing $450 million Term Loan B (TLB) at a lower interest rate.

They revealed a deal to purchase the Motel 6 and Studio 6 brands from Blackstone Real Estate for $525 million in an all-cash transaction.

Oravel Stays, the parent company of OYO, will acquire G6 Hospitality, the leading economy lodging franchisor and owner of Motel 6 and Studio 6.

This transaction is expected to close in the fourth quarter of 2024.

The firm plans to finance the acquisition through a mix of debt and equity, utilising $250 million from its recent fundraising and its existing cash balance.

Their hotel count increased from 12,938 hotels at the end of FY23 to 18,103 by the end of FY24, representing a 40% growth.

Before the acquisition, OYO projected its PAT to increase more than threefold to Rs 700 crore in the current fiscal year compared to FY24.

The firm reported its first-ever PAT of Rs 229 crore in FY24 and followed this with a profit of Rs 132 crore in Q1 FY25. Their adjusted EBITDA grew by 215% to reach Rs 877 crore in FY24, marking a significant milestone for the company.

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