Extended Stay America

  (Redirected from Extended Stay Hotels)
Jump to navigation Jump to search
Extended Stay America, Inc.
Formerly
Extended Stay Hotels
Public company
Traded asNASDAQSTAY
Russell 1000 Index component
IndustryHotels
FoundedJanuary 9, 1995 (1995-01-09) in Fort Lauderdale, Florida
Founders
HeadquartersCharlotte, North Carolina, U.S.
Number of locations
630 hotels (2019)
Area served
North America
Key people
Bruce N. Haase (CEO)
RevenueDecrease $1.218 billion (2019)
Decrease $0.165 billion (2019)
Total assetsIncrease $4.030 billion (2019)
Total equityDecrease $1.176 billion (2019)
Number of employees
1,800 (2019)
Websitewww.extendedstayamerica.com
Footnotes / references
[1]
An Extended Stay Deluxe hotel in Hillsboro, Oregon

Extended Stay America, Inc., headquartered in Charlotte, North Carolina, is the operator of an economy apartment hotel chain in the United States and Canada. It is publicly traded as a "paired share" with ESH Hospitality, Inc., a real estate investment trust and the owner of the hotels. As of December 31, 2019, the company owned and operated 557 hotel properties consisting of approximately 61,900 rooms and franchised or managed 73 hotel properties consisting of approximately 7,500 rooms.[1]

History

Extended Stay America was founded on January 9, 1995 in Fort Lauderdale, Florida by George D. Johnson, Jr. and Wayne Huizenga, both former executives from Viacom and its subsidiary Blockbuster LLC.[2] The first two Extended Stay America hotels opened in August 1995 in Spartanburg, South Carolina and Marietta, Georgia.[3]

The company became a public company via an initial public offering on December 14, 1995.[4]

Extended Stay America acquired the extended-stay hotel chain StudioPLUS on April 11, 1997.[5] The company also developed the Crossland Economy Studios brand as a budget extended-stay hotel brand.[6]

In 2013, the company moved its headquarters from Spartanburg, South Carolina to Charlotte, North Carolina.[7]

The Blackstone Group, a private equity firm, acquired Extended Stay America in May 2004 for US$3.1 billion in cash and debt. At the time of the merger, Extended Stay America operated 475 hotels; Blackstone increased that number with the addition of 132 from Homestead Studio Suites.[8][9] Homestead, which was founded by Security Capital in 1992, had been acquired by Blackstone in November 2001 for US$740 million. All of Blackstone's extended-stay hotels consisting of the Crossland, Extended Stay America, Homestead, StudioPlus, and, eventually, Extended Stay Deluxe brands were managed together by Extended Stay Hotels.[10]

In June 2007, Blackstone sold Extended Stay Hotels to the Lightstone Group for US$8 billion.[11] The deal, financed with US$7 billion of debt, was one of several multibillion-dollar hotel and casino sales made that year.[12]

The Great Recession decimated leisure and business travel and Extended Stay faced shortages in liquidity stemming from the leveraged buyout by Lightstone. On June 15, 2009, Extended Stay America filed for bankruptcy protection under Chapter 11. Through debtor-in-possession financing, it was able to continue operating rather than to face liquidation.[13]

In July 2010, an investment consortium made up of Blackstone, Paulson & Co., and Centerbridge Partners bought Extended Stay America through a bankruptcy auction for US$3.93 billion.[14]

After its successful reorganization, Extended Stay America emerged from bankruptcy in October 2010.[15]

A year after the bankruptcy, Blackstone was sued by creditors of Extended Stay America alleging that Blackstone "skimmed" US$2.1 billion off of the sale to Lightstone and knew that the amount of debt would have been unsustainable for the hotel chain; Blackstone settled the lawsuit in June 2013 for US$10 million.[16]

In April 2020, The Blackstone Group acquired an 4.9% stake in the company and Starwood Capital Group acquired an 8.5% stake in the company.[17]

References

  1. ^ a b "Extended Stay America, Inc. 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ Form S-1 1996, pp. 3–4.
  3. ^ Form S-1 1996, p. 21.
  4. ^ Form S-1 1996, p. 12.
  5. ^ "Extended Stay America, Inc". Form 8-K. U.S. Securities and Exchange Commission. April 11, 1997. p. 2. CIK 0001002579 – via EDGAR.
  6. ^ "Extended Stay America, Inc". Form 10-K. U.S. Securities and Exchange Commission. March 4, 1997. p. 10. CIK 0001002579 – via EDGAR.
  7. ^ Gailey, Alex (June 14, 2017). "Extended Stay America settles lawsuit over trade secrets against WoodSpring Hotels". American City Business Journals.
  8. ^ "Extended Stay America, Inc". Form 8-K. U.S. Securities and Exchange Commission. May 11, 2004. CIK 0001002579 – via EDGAR.
  9. ^ "The Blackstone Group Completes Acquisition of Extended Stay America, Inc" (Press release). The Blackstone Group. 11 May 2004.
  10. ^ "Security Capital Sells Homestead Village to Blackstone Affiliate for $740 Million" (Press release). The Blackstone Group. 20 November 2001.
  11. ^ "The Lightstone Group Closes $8 Billion Acquisition of Extended Stay Hotels From The Blackstone Group" (Press release). The Blackstone Group. 12 June 2007.
  12. ^ "Lightstone to buy Extended Stay Hotels for $8 bln". Reuters. April 17, 2007.
  13. ^ Nadgir, Santosh (June 15, 2009). "Debt-strapped Extended Stay files for bankruptcy". Reuters.
  14. ^ Emery, Chelsea (July 20, 2010). "US judge backs Extended Stay's reorganization plan". Reuters.
  15. ^ "Extended Stay Emerges From Chapter 11 After Buyout". CNBC. Associated Press. 8 October 2010.
  16. ^ Hals, Tom (June 20, 2013). "Blackstone settles Extended Stay lawsuit for $10 million". Reuters.
  17. ^ "Blackstone, Starwood pick up stakes in Extended Stay America". The Real Deal. April 21, 2020.

External links

The article is a derivative under the Creative Commons Attribution-ShareAlike License. A link to the original article can be found here and attribution parties here. By using this site, you agree to the Terms of Use. Gpedia Ⓡ is a registered trademark of the Cyberajah Pty Ltd.