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22. Mai 2012     Print Print 

Sale of Motel 6 for 1.9 billion dollars to Blackstone

Accor announces it has signed an agreement today to sell its United States Economy Hotels Division to an affiliate of Blackstone Real Estate Partners VII, for a total value of $1.9bn. 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.
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Blackstone Group
Accor
Motel 6
Motel 6 Blackstone Group


“This deal will provide Accor with 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”, said Denis Hennequin, Chairman and CEO.

This transaction strengthens 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. Based on FY 2011 pro forma results, the Group’s restated ROCE increases to 13.9% vs.12.3%, and the EBIT margin reaches 9.2% (vs. 8.7%). 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% of the pro forma total room portfolio as of March 2012.

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.