Accor sells Red Roof for $1.3bn

11th Sep 2007

Accor has announced 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 Pélisson, 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 dép™t et placement du Québec, and Régime de
rentes du Mouvement Desjardins. Westmont is one of the largest private owner/operator of hotels in the
Accor’s financial advisor on the transaction was Bank of America.


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