Motel 6 being sold to private group for $1.9B
NEW YORK (AP) - May 22, 2012 (WPVI) -- French hotel company Accor SA is checking out of Motel 6 and a prominent U.S. investment firm is moving in.
Accor said Tuesday that it reached a deal to sell the U.S. motel company, including its extended-stay chain Studio 6, to The Blackstone Group LP for $1.9 billion.
Motel 6, known for low prices and the slogan "we'll leave the light on for you," encompasses 1,102 hotels and 107,347 hotel rooms in the U.S. and Canada.
Accor said the deal, which it expects to close in October, will give it the resources to grow faster in Asia and the Pacific, Central and South America and Europe.
The company will continue to own and operate luxury and upscale flagship hotels in the U.S. under the Sofitel and Novotel brands.
New York-based Blackstone said in the companies' joint statement that it will operate Motel 6 independently, as it does its other hotel chains. But it plans to invest in Motel 6's properties and speed the expansion of its franchise base.
The private equity firm's other hotel companies include Hilton Worldwide.
Shares of Blackstone rose 29 cents, or 2.5 percent, to $11.99 by midday.
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