Extended Stay America is just one of Blackstone's hotel assets that it's planning to take public. Blackstone's recent boom in activity is considered a sign of a rebounding hotel market.
Extended Stay America Inc., the mid- price lodging chain owned by Blackstone Group LP, Centerbridge Partners LP and Paulson & Co., plans to raise as much as $500 million in a U.S. initial public offering.
Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase & Co. will underwrite the sale, Extended Stay said in a regulatory filing today. The largest owner-operator of company- branded hotels in North America had earlier had a placeholder amount of $100 million.
Extended Stay is valued at about $3 billion to $4 billion, excluding debt, a person with knowledge of the matter said in July. Extended Stay’s owners, which hold equal parts in the company, are taking the chain public three years after buying it out of bankruptcy.
The lodging company owns and operates almost 700 hotels in the U.S. and Canada, with about 75,900 rooms. The company, led by former Starbucks Corp. Chief Executive Officer Jim Donald, had revenue of $1 billion last year and net income of $22.3 million, according to the filing.
Editors: Andrew Blackman and Jeffrey St.Onge.