CHARLOTTE, NC-Extended Stay America Inc.'s impending IPO could nearly triple the investment made in the local-based hotel chain by Blackstone Group LP, Centerbridge Partners LP and Paulson & Co.
The IPO is expected to raise as much as $593 million when it prices next week, according to Bloomberg News. Extended Stay, which owns approximately 700 hotels in the U.S. and Canada, plans to sell 28.25 million shares for $18 to $21 each in its IPO, according to a regulatory filing.
“There are few lodging investments that are better than this return,” says Bjorn Hanson, dean of the New York University Tisch Center for Hospitality, Tourism and Sports Management and former chairman of hospitality and leisure for PricewaterhouseCoopers LLP. “It's impressive.”
Together with about $1 billion of distributions from Extended Stay, the owners will hold $4.2 billion of realized and unrealized value, according to the regulatory filing. That's about 2.7 times the $1.58 billion of equity Blackstone, Centerbridge and Paulson invested when they acquired the company in October 2010 after winning a bankruptcy auction the previous May. See story at Bloomberg News.
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