Starwood Capital Group on Tuesday reported it has acquired a portfolio of 50 U.S. economy extended-stay hotels with 6,106 rooms predominantly in the Southeast from Mount Kellett Capital Management and its partners to further grow its InTown Suites brand.
With this acquisition, InTown Suites will become the largest owner of economy extended-stay hotels in the United States, according to Starwood Capital, with 189 owned locations and 24,154 suites. Starwood Capital Group purchased InTown Suites in 2013 with the goal of expanding the company’s footprint and reinventing how consumers viewed and used extended-stay properties.
“The economy extended-stay sector continues to outperform other hospitality sectors, including luxury, and today’s transaction marks another important step in our effort to capitalize on this growth opportunity,” said Suril Shah, Starwood Capital Group’s acquisitions managing director. “Since acquiring InTown, we have seen its valuation increase by more than 30%, and we are confident that the upward trajectory will continue.”