Blackstone revives potential sale of Motel 6 brand owner
BLACKSTONE’s real estate arm is once again exploring a sale of the owner of the Motel 6 brand, according to sources with knowledge of the matter.
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 sources 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 in 2012 as part of a US$1.9 billion deal. Blackstone tested buyer interest for G6 Hospitality in late 2021. That effort, which did not result in a transaction, may have valued the budget brand’s holding company at more than US$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 stabilised.
Earlier this month, Hilton Worldwide Holdings 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 US$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 US$900 million in the business, one of the sources said. BLOOMBERG
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