The Blackstone Group today announced a $3.1 billion (€2.5 billion) agreement to acquire Extended Stay America, a publicly traded company that operates extended-stay lodging facilities in the US.
Funds for the transaction will be drawn from both Blackstone Capital Partners IV and Blackstone Real Estate Partners IV.
Blackstone has agreed to acquire the company for $19.625 per share, representing a 24 percent premium over Friday’s $15.81 per share close.
Over the past four years, the company’s share price has fluctuated between roughly $7 per share and $17 per share.
Extended Stay facilities offer core components to guests, including a combination living/sleeping area, a fully equipped kitchen or kitchenette and a bathroom.
The company will continue to be headquartered in Spartanburg, South Carolina.
Blackstone already owns Homestead Studio Suites, which currently owns and operates 132 extended stay hotels. Homestead’s management will oversee Extended Stay going forward.