National + Hospitality | June 21, 2021

Blackstone, Starwood Capital Finalize Buy of Extended Stay America

Blackstone Real Estate Partners and Starwood Capital Group have completed their acquisition of Extended Stay America and its paired-share REIT, ESH Hospitality. Valued at $6 billion, the all-cash acquisition at $20.50 per paired share was sweetened by $1 per share earlier this month.

The acquisition was originally announced in March. “Travel and leisure is one of Blackstone’s highest conviction investment themes, and we have confidence in the extended stay model,” Blackstone’s Tyler Henritze said at the time.

Goldman Sachs served as lead financial advisor to Extended Stay and BofA Securities also served as financial advisor. Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel.

J.P. Morgan, Citigroup Global Markets and Deutsche Bank acted as financial advisors and provided debt financing to Blackstone and Starwood. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone, and Kirkland & Ellis LLP acted as legal advisor to Starwood Capital.

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Blackstone’s Henritze

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).