Accor is selling its Red Roof Inns to a consortium comprised of Citi’s Global Special Situations Group and Westbridge Hospitality Fund for $1.32 billion.
The move follows a strategic review undertaken last year when Accor decided to refocus on its Motel 6 brand.
CEO Gilles Pélisson said: ”The US is a key market for us. With the ambition of being the world leader in economy and budget hotels, Accor plans to step up development of Motel 6 by opening more than 200 units in the US and Canada by 2010.”
The Red Roof Inn network will have 326 properties and 35,238 rooms, after rebranding of nine Red Roof Inns as Motel 6 units prior to the sale, located mainly in the East coast and Midwest regions of the US.
The Global Special Situations Group of Citigroup Global Markets Holdings Inc is a principal investment group while Westbridge is a partnership between Westmont Hospitality Group and a number of Canadian pension fund managers.
Westmont is one of the largest private owner/operator of hotels in the world.
By Bev Fearis
