Starwood Capital Group bought the InTown Suites extended-stay hotel chain on Monday for US$735 million, including US$617 million in existing debt.
Starwood Capital Group, Greenwich, Connecticut, is using its Starwood Distressed Opportunity Fund IX for the purchase and expects the deal to close in the first half of next year.
InTown Suites is owned by InTown Hospitality Investors LP, Atlanta, of which Kimco Realty Corp., New Hyde Park, New York, owns a 75% stake.
The InTown Suites portfolio is comprised of 138 extended-stay properties with approximately 18,000 guestrooms. The portfolio is located in 21 states, predominantly in the U.S. Southeast and Southwest, with concentrations in Texas, Georgia and Florida.
Starwood Capital Group has not indicated if it will rebrand the portfolio, which InTown Hospitality Investors owns and operates.