Carrollton-based Motel 6 bought by private equity owner
The real estate arm of Blackstone Inc. is studying the sale of Motel 6 in a deal that could value the Carrollton-based budget hotel brand holding company to more than $ 1 billion, according to people with knowledge of the matter.
The New York-based company is working with advisors and in the early stages of soliciting interest from potential suitors for G6 Hospitality LLC, which owns both Motel 6 and Studio 6, some people said.
A representative for Blackstone declined to comment.
Blackstone acquired the brands of French accommodation company Accor SA in 2012 as part of a $ 1.9 billion deal that included 1,100 hotels. The company has since sold much of the real estate. Of the approximately 1,200 Motel 6 locations in the United States at the end of last year, more than 1,050 were owned by franchisees, according to a file.
Carrollton-based holding company G6 is headed by CEO Rob Palleschi. Motel 6 claims to have the highest brand recognition of any budget accommodation brand in the United States, thanks in part to advertising campaigns of the 1980s and 1990s, according to its website.
Motel 6 has its roots in 1962, when its first location opened in Santa Barbara, California, for just $ 6 per night. Studio 6 is an economical chain for extended stays. A Motel 6 was converted to the first Studio 6 in El Paso in 1999 and the brand is now featured in more than 100 properties, the G6 website says.
Earlier this year, Blackstone partnered with Starwood Capital Group to acquire Extended Stay Inc., a mid-priced accommodation brand, and a real estate investment trust called ESH Hospitality Inc., for approximately $ 6 billion.
Budget hotel brands like Motel 6 outperformed the rest of the accommodation industry during much of the pandemic. Revenue per room available for the segment was $ 40.33 for the four-week period that ended Dec. 18, according to data provider STR. This is an 18% increase from the same period of 2019, overtaking luxury and high-end brands.