Accor to Buy Red Roof Inns for $613 Million

French travel firm Accor said it has agreed to buy U.S. economy lodging chain Red Roof Inns for $613 million plus debt in a deal that would make it the world’s third-largest hotel company. Red Roof’s majority shareholder, Morgan Stanley Real Estate Fund, had agreed to Accor’s $22.75-per-share offer for its 68.3% stake in Red Roof, the two companies said. The price represents a 27.5% premium over the 30-day average Red Roof trading price of $17.85 per share. Accor will assume $502 million in Red Roof debt. The acquisition would strengthen Accor’s position as the world leader in the budget hotel sector. Accor already owns such U.S. chains as Motel 6, Novotel and Sofitel. Accor Chairman Jean-Marc Espalioux said that Accor plans no more major acquisitions in the short term, cooling recent speculation about the possibility of a purchase of French leisure firm Club Med. Accor would generate 22% of its revenue in the U.S. after the deal, up from 17% now.