Homestead Buying 17 Hotels for $92M

ATLANTA-Ratcheting up what has otherwise been a lackluster hospitality investment market, Atlanta-based Homestead Studio Suites Hotels has signed a $92 million binding contract with Houston-based Sunburst Hospitality Corp. to buy 1,654 rooms in 17 hotels currently under the MainStaySuites brand. The price equates to an average $55,623 per room.

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.