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Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 11:57 am
by bmw
"This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors' capital and generated over $1 billion in profit over our hold period," Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement.
If he reads this, maybe MW can explain how they actually made money on this deal.
Blackstone bought them in 2012 for $1.9 billion, generated a billion dollars in profit since then, and is selling for $525 million. Unless I'm missing something here, isn't that a net loss of about $375 million?
https://www.cbsnews.com/news/motel-6-sa ... rator-oyo/
I don't recall ever staying in a Motel 6 in my lifetime. All I ever remember is those Tom Bodett commercials where he says "we'll leave the light on for ya."
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 12:05 pm
by radiofann
That’s a good loss to offset capital gains, I guess.
Tom boddett still does the commercials.
The light left on now now is LED to save on energy costs.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 12:12 pm
by Turkeytop
The buyer overpaid.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 12:23 pm
by Realist
Motel 6 has become what Holiday Inn used to be - it depends on the location to see if it’s a “nice one” or not.
The old style Motel 6’s with single floor layouts and outside doors can be really hit and miss. The newer style, multi floor units are generally very clean and modern. I’ve stayed at the one in Sandusky, Ohio during Cedar Point trips and it fits the latter description. It’s a very basic set up, but if you’re looking for a place to just shower and sleep it’s perfect.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 1:26 pm
by TC Talks
bmw wrote: ↑Sun Sep 22, 2024 11:57 am
"This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors' capital and generated over $1 billion in profit over our hold period," Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement.
If he reads this, maybe MW can explain how they actually made money on this deal.
Blackstone bought them in 2012 for $1.9 billion, generated a billion dollars in profit since then, and is selling for $525 million. Unless I'm missing something here, isn't that a net loss of about $375 million?
You buy a car for $10,000, drive it while deferring maintenance, then you stripe it out all the valuable parts and sell it for $2500. Blackstone likely got plenty of value and a tidy annual profit for those 14 years.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 5:00 pm
by Turkeytop
We have Motel 6 in Canada but I don't believe they're at all relatrd to the US chain. They have just paid for the rights to use the brand. I don't know why they would even want to use the Motel 6 brand. It probaly drives away potential customers. I've never been to one of them here but I've heard they're a decent hotel.
Motel 6 in the US usually just sets up in an old run down hotel that at one time was decent under another brand. In Canada they build a brand new hotel then stick it with the Motel 6 brand. Why would they even want to use such a disreputable brand?
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 6:42 pm
by TC Talks
Turkeytop wrote: ↑Sun Sep 22, 2024 5:00 pm
Motel 6 in the US usually just sets up in an old run down hotel that at one time was decent under another brand. In Canada they build a brand new hotel then stick it with the Motel 6 brand. Why would they even want to use such a disreputable brand?
I've been in many new built Motel 6. Generally, the rebranded old properties are in urban centers or came in early in the chain's history.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 7:58 pm
by Turkeytop
We've visited Motel 6 twice. Never again.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 8:18 pm
by TC Talks
My advice is to use Booking.com or Google and read user reviews. I'm usually loyal to Hilton and Marriott but pick the property based on reviews. There's a hotel by the Philly Airport that gets a 2.3 out of 10. I don't know how that is possible, but it was priced really well.
On a whim, I got one of these... quite an education and the reason why I carry the spray type hand sanitizer now...
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 9:18 pm
by Turkeytop
MWmetalhead wrote: ↑Sun Sep 22, 2024 8:12 pm
I've only had positive experiences at any Marriott flagged hotel (Fairfield Inn, Courtyard, Marriott proper).
I've never had any issue I can remember at any Hilton, either.
I did stay at a full scale Hyatt near downtown Tampa many years ago where my room and most common areas were in urgent need of remodeling. It also had a faint odor of cigarette smoke. The two Hyatt Place hotels I've stayed at (recent builds) were both very nice, though.
Sheridan also was very good both times I've stayed at one of their hotels.
I would try to avoid Days Inn or most Wyndham-owned hotels. Crowne Plaza (same ownership as Holiday Inn) had the most awful mattress of any hotel bed I've ever slept on. It literally had steel wire springs and minimal cushioning.
Fairfield Inn, Courtyard, Marriott. We've never had a bad experience with any of them. I've stayed at Sharaton in Toronto and Montreal. Excellent hotels.
When we're traveling we have usually stayed at Hampton Inn or Holiday Inn Express. Usually reliable. Any time we've had any kind of an issue, they've always made it right.
However Hampton Inn now has a new policy I don't like. They've removed all the clocks from their rooms. Some focus group told them, having a clock in the room makes it look too old fashioned. So now I have to lug the microwave oven across the room to the bedside stand so I can see the time when I wake up.
The ones we avoid are Motel 6, Days Inn, Ramada Inn and Howard Johnson.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 9:44 pm
by Rate This
Turkeytop wrote: ↑Sun Sep 22, 2024 9:18 pm
MWmetalhead wrote: ↑Sun Sep 22, 2024 8:12 pm
I've only had positive experiences at any Marriott flagged hotel (Fairfield Inn, Courtyard, Marriott proper).
I've never had any issue I can remember at any Hilton, either.
I did stay at a full scale Hyatt near downtown Tampa many years ago where my room and most common areas were in urgent need of remodeling. It also had a faint odor of cigarette smoke. The two Hyatt Place hotels I've stayed at (recent builds) were both very nice, though.
Sheridan also was very good both times I've stayed at one of their hotels.
I would try to avoid Days Inn or most Wyndham-owned hotels. Crowne Plaza (same ownership as Holiday Inn) had the most awful mattress of any hotel bed I've ever slept on. It literally had steel wire springs and minimal cushioning.
Fairfield Inn, Courtyard, Marriott. We've never had a bad experience with any of them. I've stayed at Sharaton in Toronto and Montreal. Excellent hotels.
When we're traveling we have usually stayed at Hampton Inn or Holiday Inn Express. Usually reliable. Any time we've had any kind of an issue, they've always made it right.
However Hampton Inn now has a new policy I don't like. They've removed all the clocks from their rooms. Some focus group told them, having a clock in the room makes it look too old fashioned. So now I have to lug the microwave oven across the room to the bedside stand so I can see the time when I wake up.
The ones we avoid are Motel 6, Days Inn, Ramada Inn and Howard Johnson.
What did poor Howard do to you?
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 10:02 pm
by Turkeytop
Rate This wrote: ↑Sun Sep 22, 2024 9:44 pm
What did poor Howard do to you?
Any one I've ever stayed at has been a dump. The last one I stayed at was in Toronto. There was some kind of big event on in town and I think I must have got the last room in the city. It had a bed, a chair and a TV. No night stand, no lamps. Just a light fixture in the ceiling. There was one electrical outlet for the entire room. It was down near the floor behind the TV. If a person had wanted to use a hair drier or an electric shaver, they'd have had to get down on the floor to do it. Also the room stunk.
The next morning in the elevator I mentioned to one of the other guests how bad the place was. He said that in the hallway on his floor there was still the chalk outline of a body on the floor.
Re: Motel 6 brand sold for $525 million
Posted: Sun Sep 22, 2024 10:15 pm
by Rate This
Turkeytop wrote: ↑Sun Sep 22, 2024 10:02 pm
Rate This wrote: ↑Sun Sep 22, 2024 9:44 pm
What did poor Howard do to you?
Any one I've ever stayed at has been a dump. The last one I stayed at was in Toronto. There was some kind of big event on in town and I think I must have got the last room in the city. It had a bed, a chair and a TV. No night stand, no lamps. Just a light fixture in the ceiling. There was one electrical outlet for the entire room. It was down near the floor behind the TV. If a person had wanted to use a hair drier or an electric shaver, they'd have had to get down on the floor to do it. Also the room stunk.
The next morning in the elevator I mentioned to one of the other guests how bad the place was. He said that in the hallway on his floor there was still the chalk outline of a body on the floor.
Howard has a dark side… we have one here by Detroit Metro Airport and the shadiest folks get on their hotel shuttle when I’m waiting for my passengers. I went and did DoorDash and had a delivery to the hotel… it was the type of place that you just walk into from the outside… no big lobby and elevators to several floors of rooms. An old fashioned motel… and again some of the shadiest folks in the area. Their van says “flight crew specials” but I don’t think any airlines put their employees up there. Basically either Marriott or Sheraton.