Hospitality
Seeking Alpha "Motel 6 Has Been Sold"
25/05/12 08:11
French hotel company Accor announced Tuesday that it has plans to sell its low-cost chain Motel 6 to Blackstone Group (BX) for $1.9 billion. This sale is an effort for Accor to cut debt and shift their efforts away from the U.S. toward high-growth emerging markets. They plan to use a portion of the proceeds from the sale to cut the company's debt by approximately EUR330 million. Other proceeds will be used to expand into growing markets such as the Asia-Pacific region and Latin America. Accor is also seeking to shift to a franchise model similar to that of competitor InterContinental Hotels Group (IHG). They expect this move to result in fewer revenue swings by partnering with the owners of the hotels as opposed to owning them directly.
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Motley Fool Blog Network "Hotels Are Hiring"
22/05/12 14:56
The lodging industry is bouncing back and seeking more workers. Hotels and motels are getting busier as Americans feel a little more secure economically and are taking vacations. The Federal Reserve has confirmed this shift in travel in its most recent survey of current economic conditions. Additionally, business travel has rebounded enough to restore hotel occupancy levels to 63.6%, close to the historic average. This is good news for the hospitality industry. It will weight especially well on some of America's favorite hotel chains.
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