Blackstone (BX) to Acquire Iconic Motel 6 Brand from Accor in $1.9B Deal
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Accor announces it has signed an agreement today to sell its United States Economy Hotels Division to an affiliate of Blackstone (NYSE: BX) Real Estate Partners VII, for a total value of $1.9 billion. The network includes Motel 6, the iconic North American brand, and Studio 6, an extended-stay economy chain, and comprises 1.102 hotels (107.347 rooms) in the USA and in Canada.
As a result of the transaction, 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.
As a result of the transaction, 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.
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