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Blackstone, Starwood Capital Partner for Second Time in Extended Stay Sector
Blackstone Inc. and Starwood Capital Group are partnering to acquire 111 Woodspring Suites hotels from Brookfield Asset Management for $1.5 billion, expanding a bet that the pandemic has increased demand for longer-term bookings, according to published reports. The two firms closed on their joint acquisition of Extended Stay America for $6 billion last year.
The clientele at extended stay hotels runs the gamut from emergency responders and construction workers to guests who use their rooms as low-cost apartments. The hotels usually offer kitchenettes and bigger living spaces, making them suitable for longer stays.
The properties have become more popular during the pandemic, as safety concerns and the ability to work remotely boosted demand, Bloomberg News reported. Simultaneously, they’ve become more attractive to investors.
Brookfield acquired the hotel portfolio it’s selling in 2018, paying roughly $750 million for the real estate. The Wall Street Journal first reported the pending acquisition.
- ◦Sale/Acquisition
