11 September, 2007: Accor announced the completion of the sale of Red Roof Inn to a consortium comprised of Citi's Global Special Situations Group and Westbridge Hospitality Fund II, L.P. for US$1.3 billion.
11 September, 2007: Accor announced the completion of the sale of Red Roof Inn to a consortium comprised of Citi´s Global Special Situations Group and Westbridge Hospitality Fund II, L.P. for US$1.3 billion.
The sale involves 341 hotels or 36,884 rooms.
Following the divestment, Accor is refocusing on a single brand, Motel 6. 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," according to a news release.
CEO 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/operators of hotels in the world.