Proskauer Advises Accor on Planned $1.9 Billion Sale to Blackstone Group
May 23, 2012 (New York) – Proskauer advised long-term client Accor S.A. on the proposed sale of its United States Economy Hotels Division to an affiliate of Blackstone Real Estate Partners VII for $1.9 billion. The network includes Motel 6, the iconic North American brand, and Studio 6, an extended-stay economy chain, and comprises 1,102 hotels in the United States and Canada. The transaction is the largest in the U.S. lodging industry since 2010.
The deal is the latest in a series of major U.S. transactions acted on by Proskauer for Accor, which the firm has represented for nearly 15 years. Most recently, the firm advised Accor on its $160 million sale-and-management-back of the Novotel New York Times Square in February 2012, in addition to representing the company on its sale-and-management-back of eight U.S. Sofitel hotels in 2006 and 2007 and its purchase of Red Roof Inns in 1999 and subsequent sale for $1.32 billion in 2007.
Leading the Accor deal with Blackstone was Partner Jeffrey A. Horwitz (Corporate, New York), head of the firm’s Lodging & Gaming Group, along with Partners Daniel I. Ganitsky (Corporate, New York), Stuart L. Rosow (Tax, New York), Ira G. Bogner (Employee Benefits, Executive Compensation & ERISA, New York), Daryn A. Grossman (Intellectual Property, New York), Helene D. Jaffe (Antitrust, New York), Andrew Bettwy (Finance, New York) and Delia B. Spitzer (M&A, New York); Associates Mina Farbood (Corporate, New York), Marjan Ziadlou (Corporate, New York), Kathleen E. Gerber (Tax, Los Angeles), Ali D. Fawaz (Tax, New York), Jessica M. Weitzman (Corporate, New York), Jonathan Benloulou (Capital Markets, Los Angeles), Aliza R. Cinamon (Environmental, New York), Yoon Suk Choo (Corporate, New York) and Anthony E. Leotti (Corporate, New York); and Legal Assistants Alison Ziffren (Corporate, New York) and Andrew R. Gunther (Corporate, New York).
Proskauer’s Lodging & Gaming Group has long been recognized in legal and business circles for the influential role it plays in the industry. The practice has a breadth of experience in mergers and acquisitions, management agreements, development projects, financings, capital markets, joint ventures, restructurings and bankruptcies, labor and employment matters, intellectual property matters, and litigation and dispute resolution. The group closed $2.5 billion in transactions in 2011 and is on track to exceed that in 2012. The group is known in the industry for its strong track record and experience in getting deals and projects done.