Blackstone Revives Potential Sale of Motel 6 Brand Owner – Yahoo Finance

1 minute, 18 seconds Read

(Bloomberg) — Blackstone Inc.’s real estate arm is once again exploring a sale of the owner of the Motel 6 brand, according to people with knowledge of the matter.

Most Read from Bloomberg

The asset manager is in the early stages of soliciting interest from potential suitors in G6 Hospitality, which owns both Motel 6 and Studio 6, the people said, asking not to be identified discussing private details.

A Blackstone spokesperson declined to comment.

Blackstone acquired the business from the French lodging company Accor SA in 2012 as part of a $1.9 billion deal. Blackstone tested buyer interest for G6 Hospitality in late 2021. That effort, which didn’t result in a transaction, may have valued the budget brand’s holding company at more than $1 billion, Bloomberg News reported at the time.

The commercial-property market froze in 2022 as borrowing costs started to soar, pressuring valuations. While financing challenges continue to weigh on transactions, some deals have been struck as interest rates have stabilized.

Earlier this month, Hilton Worldwide Holdings Inc. acquired a controlling interest in Sydell Group, which owns the NoMad hotels brand, in an effort to add to its luxury offerings. In March, Hilton agreed to buy the Graduate Hotels brand.

The Motel 6 brand traces its roots back to the 1960s, when its first hotel opened in California and charged $6 a night. Over the years, the company sold off real estate and now franchises the brand. Blackstone, which has nearly tripled its original investment, has injected more than $900 million in the business, one of the people said.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

This post was originally published on 3rd party site mentioned in the title of this site

Similar Posts