Investment firm Blackstone և Starwood Capital announced on Monday that it plans to acquire the hotel operator Extended Stay America for $ 6 billion, the latest deal to come as a result of the return of the post-epidemic trip.
The deal is a bet that the middle class of hotels providing guests with amenities such as kitchens and laundries will prosper as the US economy recovers. Last year, the chain had 74% employment, above the industry average, with many offices filled with key employees.
The new owners of the company hope that soon these rooms will be added by more tourists and travel professionals. The extended stay has about 600 locations in the US.
“Our brand employment level now rivals that of COVID,” Bruce Haas, CEO of Extended Stay, told analysts last month. “And unlike the rest of the industry, which was still looking for employment, we can now focus on higher rates.”
The company ‘s shares have more than doubled in the past year, and the takeover bid is a 15% premium over its closed share price at the end of last week.
Starwood և Blackstone both have experience in investing in hospitality, և Blackstone has even been owned by Extended Stay twice before. It acquired the company for $ 3.1 billion in 2004, and sold it for $ 8 billion three years later. It was also part of a consortium that bought the business in 2010 due to bankruptcy, surpassing the group led by Starwood Capital. Extended Stay then went public in 2013.
Other private equity firms have made similar bets on the recovery of the hospitality industry. Apollo Global Management has announced plans to join Vici Properties this month in a $ 6.25 billion deal to acquire a Venetian hotel and casino, which also includes the Las Vegas Real Estate Exhibition Center.