Blackstone, Starwood JV to Acquire Extended Stay for $6B
A 50/50 joint venture between Blackstone Real Estate Partners and Starwood Capital Group has agreed to acquire Extended Stay America and its paired-share REIT, ESH Hospitality Inc., for $19.50 per paired share in an all-cash transaction valued at approximately $6 billion. The acquisition, representing a 23.3% premium on the 30-day weighted average share price, is expected to close in the second quarter.
Tyler Henritze, head of US acquisitions for Blackstone Real Estate, said, “Travel and leisure is one of Blackstone’s highest conviction investment themes, and we have confidence in the extended stay model. We helped create this company nearly 20 years ago, and believe our expertise puts us in a unique position to add long-term value.”
Barry Sternlicht, CEO of Starwood Capital, noted, “Extended Stay has demonstrated resilience over the past year despite persistent challenges due to government lockdowns and travel restrictions.”
Extended Stay CEO Bruce Haase added, “We are confident in the company’s continued success under private ownership.”
Goldman Sachs is serving as Charlotte, NC-based Extended Stay’s financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal counsel.
J.P. Morgan and Citigroup Global Markets are acting as financial advisors and providing debt financing to Blackstone and Starwood Capital. Simpson Thacher & Bartlett LLP is acting as legal advisor to Blackstone, and Kirkland & Ellis LLP is acting as legal advisor to Starwood Capital.
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).
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