Oyo completes deal for G6, replaces CEO, plans expansion

NEW DELHI, DALLAS — Oravel Stays, the parent company of New Delhi-based travel technology company Oyo, has completed the previously announced acquisition of G6 Hospitality from Blackstone for $525 million and, while making big c-suite changes, said it is planning to add in next year 150 hotels to the Motel 6 and Studio 6 brands.

The company is also restructuring G6’s executive structure and replacing its President and CEO Julie Arrowsmith, as well as its CFO, chief brand officer, general counsel, CIO and chief human resources officer, effective Tuesday. Sonal Sinha has been appointed CEO and Tina Burnett will continue as chief development officer.

Oyo said it plans to accelerate the growth of G6 Hospitality operations by focusing on technology integration, property upgrades and market expansion. 

“OYO will maintain and strengthen the Motel 6 and Studio 6 brands as they command strong brand recognition and a loyal customer base that has been built for decades. All existing franchise agreements, including exclusivity rights, will be honored, and the current franchise success teams will continue their operations without disruption,” the company said in a news release.

The company plans to lessen its reliance on online travel agencies (OTAs), develop a broader network of distribution partners and strengthen direct booking channels and corporate booking demand.

Oyo, which has built its fast-growing international hotel portfolio on technology, plans “technological advancements to enhance the guest experience and operational efficiency.” The company said the technology upgrades will focus on “enhanced mobile and web booking experience and options of dynamic pricing capabilities.”

Corporate restructuring

Oyo said it has also restructured the G6 executive team as part of the acquisition. Other new appointments include Nishant Boorla and Anuj Ladha, who will head brand performance; Manas Mehrotra, central operations head; and Subhankar Choudhary, head of revenue, e-commerce and sales. Oyo also announced leaders in its global capacity center that will work for G6 including: Rakesh Prusti as group general counsel; Dinesh R as group CHRO; Rakesh Kumar as group CFO; Shashank Jain as group CTO; Nitin Thakur as head - global strategic alliances and communications; and Aparna Rathore as global procurement head.

The people leaving G6, effective Tuesday, include Adam Cannon, chief brand officer; Farah Bhayani, general counsel and chief compliance officer; Perry Ping, CFO; Mary Fregia, chief human resource officer and Brent Haines, CIO.  

OYO said it plans to hire at G6 primarily for the franchisee-facing functions while consolidating other functions within Oyo.

“We will continue to invest in skills that are unique and critical to the G6 business, such as supply, account management, corporate sales, brand standards, offline marketing, safety and security. Over the years, OYO has been able to successfully leverage already developed capabilities in India on technology, revenue management, e-commerce, procurement, legal, finance, and HR and will enable this for the G6 business too,” said Gautam Swaroop, CEO of OYO International.