The transaction will bring Homestead's total brand portfolio to 16,841 rooms in 132 hotels. New York-based Blackstone Real Estate Advisors, Homestead's parent, participated in the deal. Blackstone senior managing director Jonathan D. Gray says he is confident the acquisition was made prudently "despite difficult operating conditions" in the hospitality industry.

"We have confidence in the company's ability to bring these assets into its highly profitable business model, while, at the same time, maintaining the brand's excellent price/value proposition to its customers," Gray says.

The deal is the largest in Homestead's history, says company president and CEO Gary A. DeLapp. "This acquisition is a continuation of our efforts to grow the brand with properties that provide seamless integration the Homestead customer," says DeLapp.