CHARLOTTE, NC-Extended Stay Americas Inc. filed plans today for a public offering of stock and has retained Deutsche Bank, Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. to work on the offering.
The once troubled 682-hotel chain headquartered here was acquired by Blackstone Group LP, Centerbridge Partners LP, and Paulson & Co. for $3.9 billion in 2010 during a bankruptcy auction. Industry sources say that the public offering will likely take place toward year's end, according to the Wall Street Journal.
Blackstone sold the Extended Stay chain in 2007 for $8 billion to the New York City-based Lightstone Group. Extended Stay filed for bankruptcy protection in 2009, due to heavy debt as a result of the Lightstone takeover and the recession that hit the hotel industry hard.
Proceeds from the IPO will go toward retiring a portion of Extended Stay America's $3.6-billion in debt. See story in the Wall Street Journal.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
