Extended Stay to exit bankruptcy through Starwood-led investment

Extended Stay Hotels announced yesterday that it’s accepting a $905 million investment offer from Starwood Capital Group and associated investors in order to exit bankruptcy, according to the Associated Press, after turning down a recent proposal from Centerbridge Partners. The deal will reportedly allow Extended Stay to reduce its debt load exponentially, to $2.8 billion from $7.4 billion. The company board described the Starwood-led offer as “superior” to the Centerbridge offer, noting the diversity of the investment between equity and a cash option.