Accor Sells Motel 6 and Studio 6 to Blackstone
PARIS—This morning, published reports in various outlets say that Accor has agreed to sell its United States economy hotels division to an affiliate of Blackstone Real Estate Partners VII, for $1.9 billion. Included in sale are the Motel 6 and Studio 6 brands. The deal comprises 1,102 hotels in the United States and Canada.
According to the reports, the transaction is expected to strengthen the Group’s economic model and follows Accor’s decision to reduce capital employed in Motel 6 and Studio 6, as announced in September 2011. The transaction also reinforces Accor’s asset-light profile and further reduces the volatility of the Group’s results, with franchise and management contracts accounting for more than 54 percent of the pro forma total room portfolio as of March 2012.
As a result of the transaction, it is reported that Accor will reduce its net debt by approximately €330m and its fixed-lease commitments by c. €525m. The Group will register an exceptional non-cash loss of c. €600m, linked to the early buyout of fixed-lease hotels.
The transaction is scheduled to be completed in October 2012, subject to the unwinding of leases and customary closing conditions. 2012 is the 50th anniversary of the Motel 6 brand.