The Real Deal Miami

Extended Stay favoring Starwood bid

May 18, 2010 02:15PM

Starwood Capital Group’s
bid for the bankrupt Extended Stay hotel chain, filed yesterday, was “better” than the bid from a competing group led by Centerbridge Partners and Paulson & Co, according to Jacqueline Marcus, a lawyer for Extended Stay. Yesterday marked the deadline to submit a bid on Extended Stay’s holdings, according to Bloomberg news, with an auction slated for May 27. The 680-property hotel chain hopes that by selling its assets it can exit bankruptcy protection, which it filed for in June 2009. Although Extended Stay would not comment on how much Starwood’s offer was, Marcus said that the hotel feels strongly about the bid. “In our view, it’s a bit better than the Centerbridge bid, and we’re hoping there will be vigorous bidding at the auction,” Marcus said. A competing bid from the Centerbridge group has been valued at $905 million. [Bloomberg]