Accor Economy Lodging to Invest Approximately Cdn$100 Million in Canada Over Next Three Years

Business Wire, Nov 3, 1999

TORONTO and DALLAS--(BUSINESS WIRE)--Nov. 3, 1999--

Company Creates Canadian Division to Develop and

Operate Motel 6 and Studio 6 Brands

Accor Economy Lodging (AEL), the largest owner and operator of economy lodging properties in the United States, today unveiled its plans to establish a Canadian division, Motel 6 Canada, and to introduce the Motel 6 and Studio 6 brands throughout Canada. Over the next two- to three years, AEL will invest approximately Cdn$100 million to develop and operate a minimum of 10 economy motels representing approximately 1,200 rooms, according to Georges Le Mener, president and chief executive officer of AEL. As early as next year, four Greater Toronto Area properties are schedule to open, with Motel 6s in Burlington, Whitby and Brampton, and a Studio 6 in Mississauga. Over three years, AEL's investment in the area will create approximately 250 new full- or part-time jobs.

AEL is the North American economy lodging division of Paris-based Accor S.A., the world's third-largest lodging, travel and business services company. In addition to Motel 6 and Studio 6, AEL operates the Red Roof Inns brand and, in aggregate, comprises more than 10% of the entire U.S. economy lodging sector with approximately 1,112 properties representing more than 122,000 rooms located throughout the 48 contiguous states. Parent-company Accor also owns several brands within the mid-scale and upscale tiers of the lodging industry, including Sofitel and Novotel, already a well-established brand in Canada.

"With Toronto's reputation as one of the top 10 tourist spots in North America, as well as its stature as one of the most active industrial, banking, retail and commercial centers in Canada, the city offers tremendous appeal to both vacationers and business travelers alike. We felt that Motel 6 and Studio 6 would provide a fresh and modern complement to the mix of lodging options already in the area," Le Mener said. "Our working relationship with the Canadian government and lodging and tourism communities has been excellent; we look forward to a long, happy future in Toronto and throughout the rest of the country."

The first Motel 6 property will open in Burlington in January. Located at the northwest corner of North Service Road and Corporate Drive, adjacent to QEW between Walker's Line and Appleby Line, this motel will feature 122 guest rooms. The second Motel 6, located in Whitby on consumer Drive, east of Brock Street and adjacent to the 401, will feature 124 rooms and is slated to open in June. Motel 6's 122-room Brampton property, located at the 410 and Steeles on Steelwell Road, will open in July. And, the 124-unit Mississauga Studio 6, located on Britannia Road, east of the interchange of Hurontario (10) and Britannia Road East, is scheduled to open in late summer. Beginning next year and continuing through 2001, AEL will develop and open another four Motel 6 properties in Markham, Scarborough, Mississauga and Vaughan, and another two Studio 6 properties in Brampton and Markham.

"Since 1962, Motel 6 has provided a comfortable place to stay for families, business people and all those who seek consistent lodging at an affordable price," said Patrick Bourguignon, senior vice president of operations for Motel 6. "We are proud to now bring Motel 6 and our newest brand, Studio 6, across the border so that Canadian leisure and business travelers looking for fresh, new options in economy lodging will find an inviting home away from home."

Known throughout the United States for its modern, quality lodging and excellent price value, Motel 6 properties offer travelers free local phone calls and no long distance access charges, free morning coffee, 24-hour-a-day faxing service at the front desk, free cable television, and remote-control television sets. Most properties also have guest laundry facilities, electronic door locks and phones with data ports.

Geared toward travelers who are staying a week or longer, each Studio 6 offers a fully equipped kitchen, complete with utensils, dishes and cookware. Also available are remote control TV with free cable, weekly housekeeping service, free local calls, voicemail and data ports for computer hook-ups. Each Studio 6 property also features guest laundry facilities, a large vending area, and non-smoking rooms; low weekly and daily rates are available.