A 50/50 joint venture between funds managed by Blackstone Real Estate Partners and Starwood Capital Group have signed a definitive agreement to acquire Extended Stay American for $19.50 per share in an all-cash transaction valued at $6 billion.
The purchase price represents a premium of 23.3% over the 30-day volume-weighted average share price ending March 12, 2021 and a premium of 15.1% over the closing stock price on March 12, 2021.
The acquisition follows what has been a deep trough for the hospitality industry over the last year. That, though, has been changing especially with the rollout of the Covid-19 vaccines. Today, travel and leisure is one of Blackstone's highest conviction investment themes, according to Tyler Henritze, head of US acquisitions for Blackstone Real Estate.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
