NEW YORK: Blackstone Inc’s real estate arm is exploring the sale of Motel 6 in a deal that could value the budget hotel brand’s holding company at more than US$1bil (RM4.2bil), according to people with knowledge of the matter.

       The New York-based firm is working with advisers and in the early stages of soliciting interest from potential suitors in G6 Hospitality LLC, which owns both Motel 6 and Studio 6, some of the people said.

       A representative for Blackstone declined to comment.

       Blackstone acquired the brands from the French lodging company Accor SA in 2012 as part of a US$1.9bil (RM7.99bil) deal that included 1,100 hotels.

       The firm has since sold much of the real estate. Of the roughly 1,200 Motel 6 locations in the United States at the end of last year, more than 1,050 were owned by franchisees, according to a filing.

       Carrollton, Texas-based G6 is led by chief executive officer Rob Palleschi. Motel 6 claims to have the highest brand recognition of any US economy lodging brand, in part due to advertising campaigns in the 1980s and 1990s, according to its website.

       Motel 6 traces its roots to 1962 when its first location was opened in Santa Barbara, California, charging just US$6 per night. Studio 6 is an economical extended-stay chain.

       A Motel 6 was converted to the first Studio 6 in El Paso, Texas, in 1999 and the brand is now emblazoned on more than 100 properties, G6’s website shows.

       Earlier this year, Blackstone partnered with Starwood Capital Group to acquire Extended Stay Inc, a mid-priced lodging brand, and a real estate investment trust called ESH Hospitality Inc, for roughly US$6bil (RM25.2bil).

       Economy hotel brands like Motel 6 have outperformed the rest of the lodging industry for much of the pandemic.

       Revenue per available room for the segment was US$40.33 (RM169.63) for the four-week period that ended on Dec 18, according to data provider STR. — Bloomberg