Motel 6, the iconic budget hotel chain that’s been a familiar sight along American highways for over 50 years, is being acquired by India-based hospitality operator Oyo for $525 million in an all-cash transaction, as announced by both companies on Friday. The seller, Blackstone, a major private equity firm that owns the parent company of Motel 6, confirmed that the deal is anticipated to close before the year’s end. This transaction also includes Studio 6, the extended-stay brand associated with Motel 6.

Oyo, known for its budget-friendly accommodations and its self-description as a “start-up,” has been expanding its presence in the U.S. since 2019 and now operates over 300 hotels across the country. The company has also benefited from significant investment from SoftBank, although it has faced scrutiny over certain business practices in India in recent years.

Motel 6, established in Santa Barbara, California, in 1962, has long been an essential part of American travel culture, offering affordable, no-frills lodging. The original name of the chain, “Motel 6,” was inspired by its initial nightly rate of just $6. Today, Motel 6 and its counterpart Studio 6 have approximately 1,500 locations throughout the U.S. and Canada, according to Blackstone.

Gautam Swaroop, the CEO of Oyo International, expressed enthusiasm about the acquisition, highlighting Motel 6’s “strong brand recognition, financial profile, and network in the U.S.” He described the purchase as a significant step for Oyo to bolster its global presence.

Blackstone originally acquired Motel 6 in 2012 for $1.9 billion. Reflecting on the sale, Rob Harper, Senior Managing Director at Blackstone, hailed the transaction as an excellent outcome for investors, stating that it marked the completion of an ambitious strategy that tripled investor capital and generated over $1 billion in profit during Blackstone’s ownership.

The acquisition represents a notable move for Oyo as it continues to expand its international footprint, particularly in the North American market.