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Accor Sells Red Roof Inn Brand (341 hotels) to Citi's Global Special Situations Group
and Westbridge Hospitality Fund, L.P. for US 1.313 billion

PARIS, September 10, 2007 - Accor today announces 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 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/operator of hotels in the world.
Accor's financial advisor on the transaction was Bank of America.
Accor, the European leader and a major global group in hotels, the global leader in services to corporate clients ans public institutions, operates in nearly 100 countries with 170,000 employees. It offers to its clients over 40 years of expertise in its two core businesses:
  • - Hotels, with the Sofitel, Pullman, Novotel, Mercure, Suitehotel, Ibis, All Seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing more than 4,000 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, such as Lenotre;
  • - Services with 23 million people in nearly 40 countries benefiting from Accor Services products in human resources, marketing services, expense management.
When was Red Roof Inn founded?
Red Roof Inn was incorporated by founder James R. Trueman in 1972. Its first Inn opened in Columbus, Ohio, with a single room rate of $8.50 in 1973. 

How many Red Roof Inn properties are open?
Red Roof Inn has more than 340 properties open in 36 states and the District of Columbia.

When did Red Roof Inn begin franchising?
Red Roof Inn introduced franchising in late 1996 to quickly accelerate the expansion of the chain. Currently there are over 90 franchised Red Roof Inn locations open, and an aggressive list of additional franchise properties under development.

What is the growth outlook for Red Roof Inn?
Red Roof Inn is expanding its operations through franchising, strategic partnerships and developing company-owned Red Roof Inn locations in unique, high-visibility areas.



Also See: Micheal Levie, CEO of New Start-up Hotel Chain Onestarisborn, Will Present a Session Exploring Hotel Technology Needs at the European Hospitality Technology Education Conference - February 19, 2007 in Amsterdam / January 2007


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