In a further vote of confidence in the future of hospitality—and in the extended-stay sector, specifically—Blackstone and Starwood Capital Group have agreed to acquire Extended Stay America and its paired-share real estate investment trust, ESH Hospitality, for $6 billion.
A 50/50 joint venture between funds managed by Blackstone Real Estate Partners and Starwood Capital Group will acquire the 650 properties and nearly 63,000 guestrooms owned by Extended Stay America for $19.50 per paired share in an all-cash transaction. It is the latest pivot for ESA, which divided into two brands last month after years of being a single-brand vertical.
The extended-stay segment has been a bright spot for the industry during the pandemic, and the brand maintained comparable systemwide occupancy of 73.7 percent in 2020.
Read the full article on our sister publication Hotel Management