Motel 6 and Studio 6 Franchise Fees and Financing Under OYO in 2026: What Changed, the Studio 6 Plus Prototype and What Lenders Need to See

Motel 6 and Studio 6 have been owned by OYO since December 17, 2024, when Oravel Stays completed its $525 million all-cash purchase of G6 Hospitality from Blackstone. In 2026 the fees are unchanged from the last Blackstone-era schedule: a $25,000 franchise fee, a $4,750 opening package, a 5% royalty, a 3% program fee that can rise to 5.5%, a 1% reservation fee that can rise to 2%, and an IT fee of $300 a month plus $3.05 per room, per the Motel 6 FDD dated March 5, 2025. Third-party summaries of the 2026 Studio 6 FDD show the same percentages. What changed is the growth plan. OYO said it would add more than 150 Motel 6 and Studio 6 hotels in 2025, launched Studio 6 Plus as a new-construction extended-stay brand in April 2026, and runs its Light The Way and veteran incentive programs for new franchisees.

For a lender the brands are conversion flags with one new-build option. The Motel 6 FDD budgets a 100-room new build at $6,251,265 to $8,239,350 excluding land, $62,513 to $82,394 per room, among the lowest published hotel construction costs of any national brand. A conversion runs $195,259 to $1,471,540. Studio 6's 2026 range is summarized at $195,259 to $8,900,000 across conversions and new builds. Owners finance a conversion PIP with SBA 7(a), a Bridge direct PIP loan or a bank term loan. They finance a new build with a construction loan, SBA 504 or a USDA-guaranteed bank loan. All three G6 brands are on the SBA Franchise Directory. This guide covers what OYO changed, the fees, the costs, the Studio 6 Plus prototype, the SBA position, the lenders and two worked deals. Bridge structures loans on economy flags with the right SBA, bank or USDA lender and lends directly above $10 million.

Key takeaways

• Fees under OYO: $25,000 franchise fee, 5% royalty, 3% program fee (cap 5.5%), 1% reservation fee (cap 2%).
• Motel 6 new build $6.25M to $8.24M for 100 rooms before land; conversion $195,259 to $1.47M.
• Studio 6 Plus (April 2026): new-construction extended-stay, 60 to 150 rooms, kitchens, targeting a $75 to $90 ADR.
• SBA approved: Motel 6 S1133, Studio 6 S1633, Studio 6 Suites S8813, Studio 6 Extended Stay S8814.
• About 1,197 locations in 2025, with 36 openings and 30 closings; 51 Studio 6 SBA loans since 2013.

What changed when OYO bought G6?

OYO's parent, Oravel Stays, completed the $525 million acquisition of G6 Hospitality from Blackstone Real Estate on December 17, 2024. It named Sonal Sinha chief executive and said it planned to add more than 150 hotels under the Motel 6 and Studio 6 brands in 2025. The 2025 Motel 6 FDD discloses the ownership chain to Oravel Stays Singapore. The 2026 FDDs show the first OYO-era adjustments:

• The renewal fee rose from $10,000 to $12,500 for a 10-year renewal.
• The system count was reported at about 1,197 locations, with 36 openings and 30 closings in 2025.
• One aggregator counts 30 terminations against 53 projected openings.
• The fee schedule itself did not move.

For an existing franchisee the practical changes are OYO's distribution technology, its growth incentives and, from April 2026, a new-construction extended-stay sibling.

What are the Motel 6 and Studio 6 fees?

The 9% base load (5% plus 3% plus 1%) sits in the middle of the economy tier. It is level with Red Roof's 9% before its digital marketing fee and above Super 8's 8.5% and Econo Lodge's 8.5%. The program fee's room to rise to 5.5% is the item lenders flag.

What does a Motel 6 or Studio 6 cost to build or convert?

Two things a lender reads into those numbers. The Motel 6 new-build cost is roughly a third of HVS's $170,000 to $197,000 median for limited-service and midscale extended-stay hotels, which reflects an exterior-corridor economy product. Studio 6 Plus, with interior corridors and kitchens, will cost more per key than the Motel 6 table once its FDD publishes a prototype budget; Bridge's estimate is the WoodSpring and ECHO band of $90,000 to $140,000. And the conversion range is where most G6 deals happen: the 2025 FDD's $2,000 to $14,700 per room is a soft-goods-to-full-refresh spread, and the Studio 6 conversion program adds kitchen and extended-stay scope on top.

How do owners finance a Studio 6 conversion and PIP?

Three routes, by deal size and ownership.

• SBA 7(a) for an owner-operator buying and converting:
  • Up to $5 million at 90% of cost, 25-year amortization on the real estate.
  • A variable rate capped at 10.00%, which is prime plus 3.00 points with prime at 7.00%.
  • 10% equity on a change of ownership; a seller note on full standby can supply half.
  • Coverage of 1.25x reached within two years, and every owner a U.S. citizen or national since March 1, 2026.
  • Third-party loan data records 51 SBA 7(a) loans on Studio 6 hotels from 2013 to 2025 totaling $142.9 million with a 2% default rate.
• A Bridge direct PIP loan from $500,000 to $15 million for an owner who already holds the hotel and a mortgage, with a C-PACE assessment on any HVAC, lighting and roof scope at fixed rates in the high 6s to mid 7s over 20 to 30 years.
• A bank term loan at 6.75% to 7.75% over five to ten years for a stabilized hotel with a banking relationship.

The seven PIP routes are ranked in hotel PIP financing options.

Are Motel 6 and Studio 6 SBA approved?

Yes. The SBA Franchise Directory effective October 15, 2026 lists Motel 6 as S1133 and Studio 6 as S1633, both since October 2017, and added Studio 6 Suites (S8813) and Studio 6 Extended Stay (S8814) on June 11, 2026. The new codes carry the extended-stay transient test, which requires more than 50% of revenue from guests staying 30 days or less. All carry the hotel manager-affiliation condition. That matters at G6 because OYO's technology and management offerings must sit outside a franchisor-affiliated management agreement for the hotel to be eligible. The 504 debenture cap of $5.5 million covers 35% of any project up to $15.7 million, so every Motel 6 and Studio 6 build fits. The rules and brand table are in the SBA Franchise Directory check for hotel brands.

What incentives does OYO offer?

Two published programs and one implied. Light The Way is G6's program for minority investors, offering franchise-fee discounts and operational assistance; amounts are not stated in the public materials, and the Motel 6 FDD lists the fee as reducible under it. The Veteran Incentive in the 2025 Motel 6 FDD covers owners with a DD-214. And Studio 6 Plus launched with a fee structure that charges only on business the brand directly generates, with no fees on OTA bookings, which is an operating incentive rather than capital. No key money, development advance or loan-guarantee program is disclosed in the FDDs or press, which distinguishes G6 from Choice, Wyndham and Hilton. OYO's contribution is the growth target and the technology.

Who finances a Motel 6 or Studio 6?

Bridge closed more than $500 million of hotel loans in 2025 and charges a 50-basis-point placement fee on acquisitions and refinances of $10 million or more. Hotel debt funds and CMBS conduits mostly sit out of G6: the loans are under their minimums and the exterior-corridor product prices poorly in a securitization. The caution a bank will raise on a 20-year agreement is the OYO transition itself; a lender wants the current FDD and a year of post-acquisition brand standards in the file.

Worked example 1: a 100-room Studio 6 conversion PIP

In the example, an owner-operator holds a 100-room former independent extended-stay motel with $480,000 of NOI and a $3.1 million bank mortgage at 6.75%. The owner signs a Studio 6 conversion with a $1.1 million PIP: kitchens, soft goods, bathrooms and signage.

With the mortgage, the full stack costs about $387,000 a year. Pre-conversion NOI of $480,000 covers that at 1.24x. Post-conversion, at Studio 6's extended-stay model and a $55 RevPAR, NOI rises to about $620,000, a 1.6x cover on the full stack. On an SBA loan the lender records code S1633, confirms the manager is unaffiliated with G6, and checks that transient stays of 30 days or less exceed half of revenue.

Worked example 2: a 100-room Motel 6 new build

Building cost $7.2 million (mid-range of the 2025 FDD), land $900,000, $8.1 million all-in, $81,000 per key, in a highway market supporting a $58 ADR at 66% occupancy ($38 of RevPAR, NOI about $560,000).

Permanent debt service is about $585,000, a 0.96x cover at $560,000 of NOI in year one and 1.15x at $670,000 after ramp, which a $45 RevPAR delivers. That is the honest reading of an economy new build at Motel 6's cost. In the example, even one of the lowest construction costs in the industry still needs the hotel to earn above the brand's historical RevPAR to cover 85% leverage. That is why the FDD's conversion table, not its new-build table, is where most G6 financing happens, and why OYO's new-construction push runs through Studio 6 Plus at a $75 to $90 ADR. The construction checklist is in hotel construction loans in 2026.

When are Motel 6 and Studio 6 the wrong flags?

• Avoid a Motel 6 new build without a Studio 6 Plus or dual-brand plan. The brand has no current stand-alone prototype and the new-build economics are thin.
• Avoid budgeting the program fee at 3%. It can rise to 5.5% over the term; model the cap.
• Avoid signing before the lender has the 2026 FDD. Banks want the OYO-era document and brand standards in the file.
• Avoid SBA if any owner is a lawful permanent resident or OYO-affiliated management runs the hotel with full discretion.
• Avoid a Studio 6 on monthly-stay demand. The June 2026 extended-stay listings carry the transient test.