The Lightstone Group, LLC, one of the largest private real estate owners in the country, announced today that an affiliate has entered into an agreement with affiliates of The Blackstone Group to acquire Extended Stay Hotels for $8 billion. The transaction is subject to customary conditions and is expected to close in approximately two months.
Extended Stay Hotels is the largest owner of mid-price extended-stay properties in the United States, with 683 properties and approximately 76,000 units located in 44 states and Canada. The company currently operates under five brands in the extended-stay segment: Extended Stay Deluxe, Extended Stay America, Homestead Studio Suites, StudioPlus and Crossland.
'This was a perfect opportunity for The Lightstone Group to expand its growing portfolio into the hotel industry and acquiring Extended Stay Hotels immediately puts us in a leadership position within the extended stay market,' said David Lichtenstein, chairman and CEO of the Lightstone Group. 'This transaction is consistent with our strategy of acquiring companies with outstanding brand identity and bringing the necessary resources to unlock long term value.'
Integral to the completion of this deal for the Lightstone Group was Joshua Kornberg, director of acquisitions, Michael M. Schurer, CFO, and Joseph E. Teichman, General Counsel.
Bear, Stearns & Co. Inc., Blackstone Corporate Advisory, Banc of America Securities and Merrill Lynch & Co. acted as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP acted as legal advisor to Extended Stay Hotels and Blackstone. Citi, Wachovia, and Lehman Brothers Inc. acted as financial advisors to Lightstone Group, while Dechert LLP acted as legal advisor.