Is Blackstone's Extended Stay America IPO a Trial Run for Hilton?
Skift Take
Extended Stay America and Hilton are two totally different kinds of hotel companies, but Extended Stay America's IPO is likely to impact the timing and shape of a potential Hilton IPO. The most interesting thing is that if everything falls into place, it looks like Hilton's long-awaited IPO will finally be on tap for 2014.
Blackstone's Extended Stay America filed papers this week for an IPO, a development that will be watched closely by another bullet in Blackstone's private-equity arsenal: Hilton Worldwide.
Blackstone first acquired Extended Stay America in 2004, sold it in 2007, reacquired it with cohorts Centerbridge Partners and Paulson & Co. in 2010, and so far has cleared about $5 billion in profit and paid down a bunch of debt.
If market conditions fall into place, Blackstone is poised to cash in again, probably before the end of 2013 with an Extended Stay America IPO.
Blackstone's history with Hilton is less convoluted, but probably more frustrating as Blackstone acquired Hilton for $26 billion in 2007, pre-recession, and has held onto it for six years -- a very extended stay, or ownership period, for a private equity firm.
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