Extended Stay hotel chain to offer IPO
Extended Stay America filed plans for an initial public offering Monday, signifying a quick turnaround for the once-distressed hotel chain, the Wall Street Journal reported.
A person familiar with Extended Stay said its equity is worth between $3 billion and $4 billion. The 682-hotel chain has had several reversals of fortune as well as multiple owners in the past few years. In 2007, Blackstone Group sold the chain to David Lichtenstein’s Lightstone Group for $8 billion, but Extended Stay filed for bankruptcy protection in 2009 after buckling under heavy debts as a result of the acquisition.
Blackstone Group reacquired the chain in partnership with investment firms Centerbridge Partners and Paulson & Co. in 2010 for $3.9 billion during a bankruptcy auction, and have since invested heavily in the portfolio.
Blackstone also filed plans on Thursday to have an initial public offering for Brixmor Property Group, a retail property company that owns 522 shopping centers and has been valued at around $13 billion. [WSJ] – Hiten Samtani