🏨 Oyo acquires Motel 6

Good morning. Last year, Ujjwal Shah stood in line for 17 hours to grab the iPhone. This year, he broke his own record, waiting a staggering 21 hours to be the first to buy the iPhone 16 in Mumbai.

That is some determination 💪 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🏨 Oyo acquires Motel 6

• ⛽️ Fossil fuels will be around for a while

• 🗞️ Bite-sized summaries

  • ♟️ Chess legends

  • 🇮🇳 Developed by the 100th independence

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets reached record highs on Friday. Broad-based gains were seen across sectors, particularly in realty and banking. Despite a slight pullback from intraday highs, market sentiment remained positive following global trends and the recent U.S. Federal Reserve rate cut.

🌍️ International

• U.S. stock markets closed mixed on Friday, with the Dow Jones edging up 0.1% to a new record while the S&P 500 fell 0.2%. This capped off a strong week, with major indexes posting gains of 1.4-2.1%. FedEx shares dropped on disappointing earnings, while Nike rose on naming a new CEO. Treasury yields held steady. Overall, markets pulled back slightly from the previous day's rally but maintained weekly gains.

ACQUISITION

🏨 Oyo acquires Motel 6

In a bold move to expand its US presence, Indian travel tech giant Oyo Hotels & Homes has agreed to acquire G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, from Blackstone Real Estate. This $525M all-cash deal, expected to close by the end of 2024, marks a significant milestone in Oyo's international growth strategy.

The acquisition comes at an opportune time for Oyo":

• The company recently reported its first net profit of Rs 229 Cr. in FY 2023-24, signalling financial improvement after years of losses. 

• This positive trend, coupled with Oyo's active pursuit of growth in international markets, sets the stage for this strategic move.

Gautam Swaroop, CEO of Oyo International, highlighted the synergy between Motel 6's strong brand recognition in the US and Oyo's entrepreneurial spirit. Since entering the US market in 2019, Oyo has established a footprint of about 320 hotels across 35 states. The G6 Hospitality acquisition is poised to significantly enhance this presence.

Oyo's expansion isn't limited to the US. The company has been growing its premium hotel brand, Sunday, and maintains a strong presence in India, Europe, Malaysia, and Indonesia. This diversification strategy aligns with the company's global ambitions.

To fund the acquisition, Oyo plans to raise fresh debt, according to sources familiar with the matter. This follows a recent funding round of Rs 1,457 Cr. from top Indian family offices, led by founder Ritesh Agarwal's entity. However, it's worth noting that this round valued Oyo at $2.5B, considerably lower than its peak valuation of $9B.

Overall: As Oyo integrates G6 Hospitality into its operations, the move is expected to strengthen its position in the global hospitality market and provide a solid foundation for future growth in the US. 

This acquisition not only expands Oyo's portfolio but also demonstrates its commitment to becoming a major player in the international hospitality industry.

Read more: Economic Times

FOSSIL FUELS

⛽️ Fossil fuels will be around for a while

According to a McKinsey report, fossil fuels will remain a significant part of the global energy mix through 2050, accounting for 40% to 60% of energy supply despite the push for cleaner energy. 

Why? 

• Mainly due to the slower-than-expected adoption of electric vehicles (EVs) and challenges in scaling clean energy technologies like hydrogen and carbon capture. 

• While renewable energy, especially solar, is expected to grow significantly, its intermittent nature will require stable energy sources, such as gas, to ensure reliable power.

With all that said, fossil fuel consumption is expected to plateau between 2025 and 2035, but investments in this sector will continue to ensure energy reliability during the transition. 

Meanwhile, global energy demand is projected to rise by 18% by 2050, driven by growing economies in regions like ASEAN, India, and the Middle East. However, energy consumption per capita in these areas will remain lower than in developed countries due to efforts to improve efficiency.

Overall: Renewables, including solar and wind, are forecasted to make up 65% to 80% of global power generation by 2050. Yet, clean technologies face hurdles such as high costs, slow deployment, and inadequate policy support. 

The report also highlights that a significant increase in carbon pricing is necessary to accelerate the transition to low-carbon technologies and meet climate goals.

Plus, the transition to clean energy is complicated by geopolitical tensions, limited supplies of critical raw materials, and rising capital costs. Substantial infrastructure investments, particularly in transmission and distribution networks, will be needed to handle the growing share of renewable energy.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

♟️ Chess legends - India made history at the 45th Chess Olympiad, with both the men’s and women’s teams securing their maiden gold medals. The men's team triumphed over Slovenia, led by victories from Grandmasters D Gukesh, Arjun Erigaisi, and R Praggnanadhaa. The women's team dominated Azerbaijan 3.5-0.5, with standout performances from D Harika, Divya Deshmukh, and Vantika Agrawal. This victory marked a major milestone for Indian chess, as the men's team improved on previous bronze finishes, and the women's team followed their 2022 bronze with a stunning gold.

🇮🇳 Developed by 100th independence - Finance Minister Nirmala Sitharaman emphasised India's progress towards achieving the "Viksit Bharat 2047" vision, aiming to make India a developed nation by its 100th independence day. Speaking at the Pondy Lit Fest, she highlighted the government's focus on institutional capacity building, self-sufficiency in defence, banking infrastructure, and economic digitization. Sitharaman underscored that India's defence investments remain uncompromised, while digitization has strengthened the economy by involving all sections of society. She stressed the importance of education, health, and infrastructure to ensure long-term development, positioning India on the right path to meet its 2047 goals.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Coldplay Mumbai concert tickets: BookMyShow faces backlash over ‘cheating’, fans stuck in over 11 lakh waitlist.

• Bengaluru auto driver's 'smart' UPI payment method has Railways Minister's attention.

• Court gives 5 days for X to validate its Brazil legal representative.

• Trump rejects second TV debate as its 'too late.'

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Cricket: India win the Test series vs. Bangladesh by 280 runs.

• Premier League round-up: Man City, Arsenal draw 2-2.

• ‘Scandal’ cast to reunite for Kamala Harris reproductive freedom bus tour.