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OYO commits $10 million to G6 Hospitality’s digital upgrade

The investment funds campaigns to reach ‘high-intent’ customers

OYO invests $10M to enhance G6 Hospitality’s digital platform, improving website, app, and direct bookings for better guest experience
OYO aims to invest $10 million to upgrade G6 Hospitality’s digital assets, targeting a quadruple increase in apps before summer through advanced marketing and partnerships with Google and Microsoft.

OYO’s $10M Investment to Enhance G6 Hospitality’s Digital Growth

HOSPITALITY TECHNOLOGY FIRM OYO aims to invest $10 million to enhance G6 Hospitality’s digital assets, including its website and app, targeting a quadruple increase in apps before summer. The company will use digital targeting, focusing on high-intent customers through direct partnerships with Google and Microsoft.

The investment will fund data-driven digital campaigns to reach customers actively searching for accommodations with an aim toward boosting booking conversions and franchise partner value, G6 Hospitality said in a statement.


"By concentrating our resources on users most likely to convert, we're optimizing our marketing spend and delivering more value to our franchise partners,” said Shashank Jain, G6 Hospitality’s head of online revenue. "The investment underscores G6's commitment to supporting its franchise network by driving direct bookings and reducing dependency on third-party platforms.”

OYO, which acquired G6 Hospitality from Blackstone Real Estate for $525 million, plans to add more than 150 Motel 6 and Studio 6 hotels in 2025, strengthening its presence in Texas, California, Georgia and Arizona while preserving brand identity. G6 Hospitality also partnered with HotelKey to upgrade technology across its U.S. and Canada properties.

Meanwhile, OYO launched “Pay at Hotel” feature at more than 400 properties in 35 states, letting guests pay at check-in. The feature will only be available at OYO properties.

OYO plans to invest $62 million over three years to expand its UK premium hotel portfolio.

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Report: Rising Labor costs tighten US hotel industry margins
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Report: Labor costs tighten U.S. hotel margins

Summary:

  • U.S. hotel margins tighten as demand slows and labor costs remain high, HotStats reported.
  • Unionized hotels carry 43 percent labor costs, versus 33.5 percent at non-union properties.
  • U.S. sees falling group demand and lower profit conversion since the second quarter.

THE U.S. HOTEL industry is showing signs of strain after a strong start to 2025, according to HotStats. Revenue growth is slowing, occupancy is falling and profit margins are tightening, particularly at unionized properties where labor constraints affect performance.

HotStats’ recent blog post revealed that TRevPAR has barely kept pace with labor costs in the first eight months of the year. While TRevPOR remains positive, gains are offset by declining occupancy, a sign that demand is cooling.

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