Extended StayAmerica

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Extended Stay America logo.png

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.

Extended Stay Hotels and its brands currently own and operate over 680 hotels with approximately 76,000 rooms across the United States and Canada.

A Deluxe branded hotel in Hillsboro, Oregon

According to the company's website as of August 19, 2009, its brands included the following:[3]

  • Extended StayAmerica – 632 hotels (includes Homestead, Extended Stay Plus, and StudioPlus)
  • Homestead Studio Suites – 132 hotels (Re-branded to extended Stay America)
  • Extended Stay Deluxe – 109 hotels (Re-branded to extended Stay America)
  • StudioPLUS – 46 hotels (Re-branded to extended Stay America)
  • Crossland – 48 hotels

Beginning in 2012 ESA began a phase out of its Homestead Studio Suites, ExtendedStay Deluxe and StudioPlus Brands and re-branded these properties as Extended StayAmerica Hotels. Crossland Studio Suites remains as ESAs economy brand. At the same time of its re-branding effort, ESA rolled out a new logo, a green star formation with a brown background. The new logo represents the hotel brands focus on modernization and complete renovations of all ExtendedStay America properties in an effort to compete with emerging competitors such as Homewood Suites by Hilton, Marriott TownPlace Suites, Starwoods element Hotels, and Stay Bridge Suites. Guest Suites include a full kitchen with dishwasher, free WiFi, new bedding and case goods, modern baths and lighting, a new grab and go breakfast, shuttles (select properties), guest laundry, fitness centers and pools (select properties)A majority of properties are also pet friendly. The massive re-branding of Extended Stay America has yielded very positive results. Properties for the most part receive 3 stars from guest ratings on Expedia and TripAdvisor and the companies stocks are trading at elevated levels, primarily due to higher income levels generated from hotel side revenues and higher occupancy rates.

Extended Stay America recently introduced a loyalty program "Extended Perks Rewards". The program, instead of using points, provides percentages off stays as well as provides additional discounts of up to 25% at local area merchants, car rental agencies, restaurants and tourist attractions. Since participation does not depend on staying (or having ever stayed) at an Extended Stay America hotel, it is not a true loyalty program. As such, it is an aggregation of readily available discounts and a lure to provide an email address. (Discounts are provided by a third party under contract with Extended Stay America and are neither unique nor exclusive to hotel patrons as they are readily available to the general public through numerous other channels.)

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
  3. ^ [1]

External links[edit]