Tuesday April 24, 04:30 AM
Accor sells Red Roof Inns to US group, fund
PARIS (AFP) - French hotelgroup Accor (Paris: FR0000120404 - news) on Tuesday announced the sale of its US chain Red Roof Inns to the US Citi Global Special Situations Group and the Westbridge Hospitality Fund for 1.32 billion dollars.
The transaction is part of "a strategic review of the group undertaken in 2006", Accor said in a statement.
Global Special Situations Group is a subsidiary of Citigroup Global Markets Holdings and Westbridge is a partnership between Westmont Hospitality Group and Canadian pension funds including Cadim, a subsidiary of Caisse de depot et de placement of Quebec and Regime de rentes du Mouvement Desjardins.
Westmont is a major private hotel operator and owner.
Red Roof Inns has 326 hotels with 35,238 rooms mainly on the East Coast and in the Midwest.
In the United States, Accor also owns Motel 6, leader of US budget hotels.
"The United States are a key market for us," said Accor chief Gilles Pelisso in the statement.
"Having the ambition to be the world leader in the budget hotel business, Accor means to develop Motel 6 by opening more than 200 hotels in the United States and Canada by 2010," he said.
Motel 6 has 928 hotels, mainly on the US West Coast where it is the leader in California with 181 hotels.
It has been very well established for more than 30 years as a "national chain with the lowest rates", said Accor.
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