French hotel group Accor SA (ACRFF.PK, ACRFY.PK) said it agreed to sell its United States Economy Hotels Division to an affiliate of Blackstone Group LP's (BX: Quote) Blackstone Real Estate Partners VII, for a total value of $1.9 billion. The network includes Motel 6, the iconic North American brand, and Studio 6, an extended-stay economy chain, and comprises 1.102 hotels in the USA and in Canada.
As a result of the deal, Accor will reduce its net debt by approximately 330 million euros and its fixed-lease commitments by about 525 million euros. The group will register an exceptional non-cash loss of about 600 million euros, linked to the early buyout of fixed-lease hotels.
The deal is scheduled to be completed in October 2012.
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by RTT Staff Writer
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