An investment group has completed its acquisition of
midprice hotel operator Extended Stay, bringing the company out of Chapter 11
bankruptcy protection.
The group, which includes Centerbridge Partners, Paulson
& Co. and Blackstone Real Estate Partners, bought 100 percent of the
Spartanburg, S.C.-based company for $3.925 billion, the group announced on
Friday. Extended Stay, which owns 685 hotels across the United States and
Canada under such brands as Extended Stay America and Homestead Studio Suites,
filed for bankruptcy protection in June 2009 with about $7.6 billion in debt.
Since that time, Extended Stay has reduced its debt burden by nearly $5
billion, according to the group.
Former Global Hyatt Corp. president Doug Geoga has assumed
the position of non-executive chairman of the board for Extended Stay. A
separately owned company, HVM, manages the company’s hotel portfolio and will
continue to do so following the acquisition.