Hotel group Accor has announced the $1.3 billion sale of Red Roof Inns to a consortium made up of Citigroup’s Global Special Situations Group and Westbridge Hospitality Fund.
The Red Roof Inn network has 326 properties and 35,238 rooms located mainly in the East coast and Midwest regions of the United States.
The sale will enable Accor to reduce its adjusted net debt by Є830 million ($1.08 billion), of which Є470 million (£610 million) will be added to the Group’s cash reserves.
Accor is planning to focus on its Motel 6 brand which has 928 hotels across North America.
Chief executive Gilles Pélisson said: “The United States are 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 is an investment group and Westbridge is a part of Westmont, a private owner/operator of hotels.