Blackstone and Starwood Capital have agreed to acquire Extended Stay America, a press release says, with the deal going forward for around $6 billion.
“Travel and leisure is one of Blackstone’s highest conviction investment themes, and we have confidence in the extended stay model,” said Tyler Henritze, head of U.S. acquisitions for Blackstone Real Estate. “We helped create this company nearly twenty years ago, and believe our expertise puts us in a unique position to add long-term value.”
The transaction, approved by ESA’s board of directors, will be completed in the second quarter of 2021.
Bruce Haase, CEO and president of Extended Stay America, said the company was “pleased to announce this transaction with Blackstone and Starwood Capital, two of the most experienced investors in the hospitality space with impressive track records of building value in a wide variety of real estate assets, and we look forward to this partnership and continued growth.”
“The Boards and senior management are especially grateful to the excellent team of leaders and associates who have made this company such a leader in the lodging industry and we are confident in the Company’s continued success under private ownership,” he said.
Barry Sternlicht, CEO of Starwood Capital, said Extended Stay had “demonstrated resilience over the past year despite persistent challenges due to government lockdowns and travel restrictions.”
“We are excited about the Company’s growth opportunity as restrictions ease and we’re confident that, in partnership with Blackstone and the Company, our team has the right experience to drive continued success.”
The travel industry was naturally set back by the pandemic as people hunkered down and stopped traveling for the most part. But as travel starts to come back as more people get vaccinated, things like contactless payments and mobile wallets are emerging as the solutions to keep things safe.
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