Global buyout house Blackstone has picked up French hotel group Accor’s troubled US arm for $1.9bn.
The deal comprises more than 1,100 hotels across North America in the company’s Motel 6 and Studio 6 brands.
Accor will take a $766m hit as part of the sale due to the early buyout of fixed-lease hotels, according to Reuters, but said its net debt would reduce by about half that and its fixed-lease commitments by about $650m.
Chief Executive Denis Hennequin said, “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.”
Blackstone said it planned to invest significant capital in the Motel 6 hotels and expand the franchise base following the deal, which should be completed by the end of October.
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