Search

×

Extended Stay Hotels going public

Extended Stay Hotels filed with the U.S. Securities and Exchange Commission on Monday for an initial public offering to raise up to US$100 million.

The Wall Street Journal reported that according to people familiar with the matter, proceeds from the IPO will be used to retire some of the company’s US$3.6 billion debt.

The move comes less than three years after Extended Stay Hotels, Charlotte, North Carolina, was bought at a bankruptcy auction for US$3.9 billion by Paulson & Co., Centerbridge Partners and Blackstone Group and follows the recent trend of private equity firms taking advantage of the buoyant stock market to exit investments.

Extended Stay Hotels is currently in the process of consolidating and reflagging their brands Extended Stay Deluxe, Homestead Studio Suites and Studio Plus Deluxe Suites under one brand, Extended Stay America.

Comment