PRIVATE EQUITY OWNED
Extended Stay America
extended stay hotel · Charlotte, NC
- Year Acquired
- 2021
Sold high, went bankrupt, bought back at half price. The Blackstone special.
What They Did
- Blackstone sold Extended Stay in 2007 for $8 billion. The buyer borrowed $7.4 billion to buy it, and it filed Chapter 11 in 2009
- Blackstone, with Centerbridge and Paulson, bought it back out of bankruptcy in 2010 for $3.93 billion, less than half what it sold for
- Creditors sued Blackstone in 2011, accusing it of siphoning $2.1 billion out of the company. Blackstone settled in 2013 for $10 million
- Blackstone and Starwood acquired it again in 2021 for $6 billion, borrowing $4.65 billion against the hotels to pay for it
Since the Acquisition
- A December 2022 class action accused Extended Stay of canceling prepaid reservations when guests missed a midnight check-in and keeping their money. The company couldn't get the refund claims thrown out and settled in 2024
Sources
- Blackstone and Starwood Acquire Extended Stay — Globe Newswire(2021-03-15)
- Blackstone sued over Extended Stay buyout — Fox Business(2011-06-17)
- Extended Stay creditors sue Blackstone for $8B — PERE News(2011-06-15)
- Extended Stay Hotels files for bankruptcy (AP) — NBC News(2009-06-15)
- Blackstone, Centerbridge and Paulson scoop Extended Stay — PERE(2010-05-28)
- Blackstone Group Q2 2013 Form 10-Q — Extended Stay litigation settlement ($2.1B sought, $10M paid, approved July 19 2013) — SEC EDGAR(2013-08)
- Blackstone, Starwood Finance Extended Stay America Buy With $4.65B CMBS Loan — Commercial Observer(2021-06-21)
- Class Action Alleges Extended Stay America Denies Refunds to Prepaid Guests, Cancels Reservations — ClassAction.org(2022-12-16)
- Brittian v. Extended Stay America, 3:22-cv-00663 (W.D.N.C.) docket — motions to dismiss granted in part/denied in part Apr 2023; stayed pending settlement; stipulation of dismissal Aug 2, 2024 — CourtListener(2024-08)
- Blackstone, Starwood Capital complete acquisition of Extended Stay America — Hotel Business(2021-06-16)