Motel 6 is upgrading thousands of rooms and entering new markets in Latin America, where its parent company, G6 Hospitality, broke ground last month on its first hotel, reports The Wall Street Journal.
Blackstone Group, which acquired Motel 6 from Accor SA for $1.9 billion in 2012, is fueling the expansion. The previous owner, a French hotel operator, slowed investment in the brand after turning its focus elsewhere. Blackstone said at the time of the 2012 acquisition it would spend another $500 million to upgrade the existing properties, and it now expects to exceed that figure.
The New York investment firm sold $2 billion in a combination of commercial mortgage-backed securities and mezzanine debt last week as part of a refinancing. It values the hotel chain at nearly $3 billion.