Accor, in a $1.3 billion transaction, has
sold its Red Roof Inns brand to a consortium of investors. The
hotel chain encompasses 326 properties, largely located in the
Midwest and along the East Coast.
A consortium
comprised of the Global Special Situations Group of Citigroup
Global Markets Holdings, and the Westbridge Hospitality Fund, a
partnership between the Westmont Hospitality Group and several
Canadian pension funds.
The sale of Red
Roof leaves Accor with Motel 6 as its only U.S.-based hotel
chain.
The Red Roof sale
is the latest in a string of transactions by Accor over the past
several months.
Accor recently
signed a memorandum of understanding to sell a portfolio of 91
hotels in Germany and the Netherlands for $1.1 billion.
In February,
Accor signed a $921 million agreement to sell a portfolio of 30
hotels in the U.K. operated under its Ibis and Novotel brands to
Land Securities, a company that owns properties in England,
Scotland and Northern Ireland.
Earlier this
year, Accor also sold its stake in Go Voyages, a French online
travel distributor for $364 million.
Accor said the
sales are part of a larger effort to refocus the companys
operations on its core hotel brands, which also include Sofitel,
Mercure, Suitehotel, Etap Hotel, Formule 1 and Motel 6.
To contact reporter Michael Milligan, send e-mail to [email protected].