NEW YORK CITY-Three investment firms that bought Extended Stay Hotels in a 2010 bankruptcy auction plan to sell $3.5 billion of debt to refinance their purchase. Blackstone Group LP, Centerbridge Partners and Paulson & Co. will recoup about half of their equity investment, sources told Bloomberg News.

Blackstone previously purchased the hotel chain in 2004 for $3 billion, when it was known as Extended Stay America. The group has invested about $420 million in renovations and to consolidate the properties under the Extended Stay name.

The buyout group plans to raise $2.5 billion through the CMBS market, the Wall Street Journal reports. The group also hopes to raise $1 billion in “mezzanine” debt, which is considered a riskier investment, according to the report.