OTHER NEWS - March 30, 1995
<i> Times Staff and Wire Reports</i>
Motel 6, Allstar Inns Settle Litigation: Allstar Inns Inc. announced an agreement under which it may sell its 72 motels to Motel 6 Operating and liquidate itself by 1998. The deal between the companies settles a breach-of-contract lawsuit over Motel 6’s management of the motels, Allstar said. Under the terms, the contract will be terminated and Dallas-based Motel 6, owned by Accor of France, will lease the motels for 15 years. Motel 6 will pay Allstar’s annual debt service, which exceeds $20 million, and $3.5 million a year in rent.
