ndia-based hotel giant Oyo has agreed to buy Motel 6 for $525 million, marking a significant step in its U.S. expansion.

Motel 6, known for budget-friendly lodging, has operated for 62 years with about 1,500 locations across the U.S. and Canada.

Blackstone, the New York investment firm that bought Motel 6 in 2012, is selling it, with the deal expected to close in the fourth quarter, the Wall Street Journal has reported.

Despite past struggles, Oyo plans to maintain Motel 6 as a separate entity and hopes to leverage its brand recognition to grow further in the U.S.

Written by B.C. Begley