Accor signed an
agreement to sell the Motel 6 and Studio 6 brands to a Blackstone Real Estate
Partners affiliate for $1.9 billion.
The economy and extended-stay
brands in the United States and Canada together comprise a total of 1,102
hotels and 107,347 rooms and represent the bulk of Accor's portfolio in North
America. The two companies expect the deal to be completed in October.
According to Accor
chairman and CEO Denis Hennequin, the sale gives the hotel company "additional
resources to address the tremendous growth potential in the Asia/Pacific
region, in Latin America and in Europe, where the leadership of our brands is
one of the key drivers of our future growth." Hennequin recently said the
company is looking at acquisitions in India, for example, in order to best
Carlson Hotels as the market leader there. Accor indicated that the sale will free
up about €525 million in fixed-lease commitments and reduce its net debt by
about €330 million.
Accor still would have a
small presence in North America through its luxury Sofitel and upscale Novotel
brands.
Blackstone global head
of real estate Jonathan Gray in a statement indicated that he plans "to
invest significant capital in the [acquired] properties and to accelerate the
expansion of the franchise base." Although Blackstone already owns several
large hotel brands, including the Hilton Worldwide portfolio and La Quinta Inns
& Suites, the firm intends to operate Motel 6 and Studio 6 on a "stand-alone
basis," according to Gray.