Extended StayAmerica

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Extended Stay America (NYSESTAY) is a extended-stay hotel brand owned by Extended Stay Hotels, comprising 632 properties across the United States that are all owned and operated by the company, which is headquartered in Charlotte, North Carolina. The company also owns several related brands, for a total of about 700 hotels and 76,000 rooms.[1]

The first Extended StayAmerica hotels opened in 1995 by a number of founders including management from Blockbuster Video and AutoNation. The company's headquarters were in Ft. Lauderdale, Florida. In 1996, Extended Stay America acquired StudioPLUS, further continuing its growth. During this time, the company also developed Crossland Economy Studios. The company also added various brands offering different levels of service, like Extended Stay Deluxe and StudioPLUS. In 2001, the company moved to Spartanburg, South Carolina in 2001, and by August 2001, the company was added to S&P 400.

Blackstone took Extended Stay America private in May 2004 to form a new company, Extended Stay Hotels. It paid close to $2 billion in cash as well as over $1 billion in debt. At the time, Extended Stay America had 425 hotels, but Blackstone added about 255 properties from other acquisitions including Homestead Village, which it agreed to buy for $600 million two months after the Sept. 11, 2001 terrorist attacks. [2]

In 2007 Extended Stay Hotels was sold to the Lightstone Group for $8 billion. The sale was one of the biggest non casino hotel deals in history.[citation needed]

On June 16, 2009, the company filed for Chapter 11 bankruptcy, citing $7.1 billion in assets and $7.6 billion in liabilities. The company intends to keep operating all its properties through bankruptcy by using its substantial cash flow rather than debtor-in-possession financing.

Extended Stay America was bought out of bankruptcy by an investment group including Blackstone Group, Paulson & Co. and Centerbridge Partners in October 2010.

External links[edit]

References[edit]

  1. ^ "about Extended Stay America". Retrieved 5 August 2013. 
  2. ^ RYAN CHITTUM and JENNIFER S. FORSYTH, Lightstone to Purchase Extended Stay for $8 Billion, Wall St Journal, April 18, 2007; Page A3