Accor Announces the Completion of the Sale of Red Roof Inn to Citi Global Special Situations Group and Westbridge for 1.313 Billion US Dollars
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Accor Announces the Completion of the Sale of Red Roof Inn to Citi Global Special Situations Group and Westbridge for 1.313 Billion US Dollars
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2007-09-11
Accor today announces the completion of the sale of Red Roof
Inn (341 hotels - 36,683 rooms) to a consortium comprised of Citi's Global Special Situations Group and Westbridge Hospitality Fund, L.P. for US 1.313 billion dollars.
Following the divestment, Accor is refocusing on a single brand, Motel 6, the leading economy hotel chain in the United States. Motel 6 operates 928 hotels across North America. The chain enjoys very high brand recognition and a unique positioning, established more than 30 years ago, as offering "the best price of any national chain".
Regarding this operation, Gilles Pelisson, CEO, said: "The United States 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 United States and Canada by 2010."
The Global Special Situations Group of Citigroup Global
Markets Holdings Inc is a principal investment group that invests Citi's
capital in event-driven and special situation strategies globally.
Westbridge is a partnership between Westmont Hospitality Group and a number of Canadian pension fund managers, including Cadim Inc., a division of Caisse de depot et placement du Quebec, and Regime de rentes du Mouvement Desjardins. Westmont is one of the largest private owner/operator of hotels in the world.
Accor's financial advisor on the transaction was Bank of
America.
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