Stephen A. Schwarzman and Tom Bodett are joining forces.
You don't get bigger money than Blackstone (BX), and you don't find a, let's say better deal, on the road than Motel 6. Now, they're coming together. The giant investment firm has agreed to take over the chain that vows to leave the light on for you and add it to its already substantial lodging assets.
On Tuesday, reports emerged that France's Accor SA has reached a deal to sell the Motel 6 chain to the investment firm for a price of $1.9 billion. The hotel line got its start in Santa Barbara, Calif., in 1962, and it now has more than 1,100 locations in the U.S. and Canada.
For Blackstone, this is familiar territory. In addition to the reasonably priced hotel chain it will soon bring under its umbrella, Blackstone's massive real estate holdings include countless hotel rooms. Acquisitions in just the past few years have included the Waldorf-Astoria, the former Rihga Royal hotel in New York and Boca Resorts. And not so long ago, it put more than $20 billion toward the purchase of Hilton.
Shares of Blackstone were recently up 18 cents at $11.88. In the past year, the stock has traded between $10.51 and $17.78.