Extended Stay America is an affordable apartment hotel chain, which has its corporate office in Charlotte, North Carolina.
As of December 31, 2019, the firm owned and operated 557 hotel locations with a total of over 61,900 rooms, while also managing or franchising 73 other properties with a total of roughly 7,500 rooms.
Who Owns Extended Stay America?
Extended Stay America is currently owned by The Blackstone Group & Starwood Capital Group.
The Blackstone Group and Starwood Capital Group both purchased stakes in the company totaling 4.9% and 8.5%, respectively, in April 2020.
In June 2021, the firm delisted from Nasdaq and turned private after Blackstone Real Estate and the Starwood Capital Group bought the remaining shares.
History of Extended Stay America
In Fort Lauderdale, Florida, on January 9, 1995, George D. Johnson, Jr. and Wayne Huizenga, both former executives of Viacom and its subsidiary Blockbuster LLC, created Extended Stay America. In August 1995, the first two Extended Stay America hotels opened in Marietta, Georgia, and Spartanburg, South Carolina.
On December 14, 1995, the business went public through an initial public offering. On April 11, 1997, StudioPLUS, a chain of extended-stay hotels, was purchased by Extended Stay America.
As a low-cost extended-stay hotel brand, the business also created the Crossland Economy Studios brand. In December 2015, the 47-unit Crossland chain was sold to Westmont Hospitality Group for $285 million.
The business relocated its corporate offices from Spartanburg, South Carolina, to Charlotte, North Carolina, in 2013.
Extended Stay America was purchased by the private equity company The Blackstone Group in May 2004 for a total of US$3.1 billion in cash and debt. Blackstone added 132 properties from Homestead Studio Suites to the 475 hotels Extended Stay America operated at the time of the deal.
Blackstone had purchased Security Capital’s 1992-founded Homestead in November 2001 for US$740 million. Extended Stay Hotels operated all of Blackstone’s extended-stay hotels, which included the Crossland, Extended Stay America, Homestead, StudioPlus, and later, Extended Stay Deluxe brands.
Extended Stay Hotels were sold by Blackstone to the Lightstone Group in June 2007 for US$8 billion. The transaction, which was backed with debt worth $7 billion, was one of many multibillion-dollar sales of hotels and casinos that year.
Due of 2008 Great Recession, Extended Stay America submitted a Chapter 11 bankruptcy petition on June 15, 2009. It avoided liquidation by obtaining debtor-in-possession financing and was able to carry on with business operations.
Extended Stay America was purchased by an investment group made up of Blackstone, Paulson & Co., and Centerbridge Partners in July 2010 for US$3.93 billion at a bankruptcy auction.
The Blackstone Group purchased a 4.9% share in the business in April 2020, while Starwood Capital Group purchased an 8.5% stake. When the remaining shares were acquired by Blackstone Real Estate and the Starwood Capital Group in June 2021, the firm delisted from Nasdaq and went private.
Who Founded Extended Stay America?
Extended Stay America was founded by George D. Johnson, Jr. and Wayne Huizeng in 1995. Both the co-founders were former executives at Viacom.