Oyo Focuses on Direct Bookings and Customer Engagement with Major Investment in Motel 6 Digital Growth

Oyo, the global travel technology company and owner of G6 Hospitality, is making a big push into the U.S. budget-hotel market by investing $10 million into the digital growth of G6 Hospitality’s Motel 6 website and My6 mobile app. This investment aims to enhance the brand’s digital capabilities, improve booking conversion rates, and drive direct customer engagement. By leveraging this investment, Oyo hopes to modernize Motel 6’s online presence and streamline the booking process for customers, ensuring a seamless digital experience.

With the goal of increasing app installs by four times before the summer travel season, G6 Hospitality will implement advanced digital targeting strategies to attract high-intent travelers. By forming direct partnerships with major digital platforms such as Google and Microsoft, the company seeks to optimize its marketing spend and reach customers actively searching for accommodations. This approach allows G6 Hospitality to focus on acquiring the right customers who are more likely to convert, ultimately boosting revenue while reducing reliance on third-party booking platforms.

“Our focus is on acquiring customers who are most likely to convert, ensuring that we maximize value for our franchise partners,” said Shashank Jain, Head of Online Revenue at G6 Hospitality. “By investing in digital growth, we’re enhancing the guest experience while also reducing dependency on third-party booking platforms.” This strategic investment reflects the company’s commitment to providing greater autonomy for franchise partners by driving more direct bookings and reducing commission costs associated with external booking platforms.

Beyond digital initiatives, G6 Hospitality is also expanding its physical presence, with plans to add over 150 hotels in 2025 under the Motel 6 and Studio 6 brands. The expansion will focus on key markets such as Texas, California, Georgia, and Arizona, regions that have demonstrated strong demand for budget-friendly and extended-stay accommodations. This growth strategy is expected to strengthen Motel 6’s brand positioning and provide travelers with more affordable lodging options.

Oyo’s recent $525 million acquisition of G6 Hospitality from Blackstone Real Estate marks a strategic move to reinforce its North American portfolio. By growing the Motel 6 and Studio 6 footprint, Oyo aims to expand its reach within the U.S. market and cater to an evolving customer base seeking affordable yet reliable accommodation options. This investment is part of Oyo’s larger plan to strengthen its position in the North American hospitality industry and capitalize on growing demand within the economy lodging segment.

In parallel with its digital and physical expansion, G6 Hospitality recently announced a strategic partnership with hospitality technology provider HotelKey. This collaboration will improve the technological infrastructure across its properties in the U.S. and Canada, enhancing operational efficiency and guest experience.

By integrating Oyo’s expertise in digital hospitality with HotelKey’s solutions, the company seeks to modernize its service offerings and remain competitive in the budget-hotel segment. The integration of HotelKey’s property management system will allow G6 Hospitality to streamline operations, improve automation, and provide better insights into guest preferences and booking trends.

Oyo’s renewed investment in the U.S. market signals a strategic comeback after previous challenges, including scaling back operations due to the pandemic. By focusing on direct bookings, digital innovation, and franchise expansion, Oyo is positioning itself for long-term success in North America. The company is betting on a data-driven approach to customer acquisition, using targeted digital marketing to maximize efficiency and reduce customer acquisition costs.

With summer approaching, the effectiveness of these digital initiatives will soon be tested. If successful, this investment could solidify Oyo’s presence in the U.S. hospitality industry, transforming Motel 6 into a digitally driven budget-hotel leader. Franchise partners stand to benefit significantly from these efforts as more direct bookings translate to higher profitability and reduced dependency on costly third-party intermediaries.

Oyo’s $10 million investment underscores its commitment to revitalizing G6 Hospitality’s digital and operational capabilities. As the company pushes for greater digital adoption, franchise expansion, and technology-driven efficiency, the upcoming travel season will be a crucial test of its strategy’s success. If executed effectively, this initiative has the potential to reshape the budget-hotel landscape and establish Oyo as a formidable player in the North American hospitality market.