Extended Stay America
| Formerly | Extended Stay Hotels |
|---|---|
| Company type | Private company (1995-2013, since 2021) Public company (2013-21) |
| Nasdaq: STAY (2013-21) | |
| Industry | Hotels |
| Founded | August 1997 in Fort Lauderdale, Florida |
| Founders | Template:Ublist |
| Headquarters | Charlotte, North Carolina, U.S. |
Number of locations | 650 hotels (2022) |
Area served | North America |
Key people | Greg Juceam (CEO) |
| Revenue | Decrease $1.218 billion (2019) |
| Decrease $0.165 billion (2019) | |
| Total assets | Increase $4.030 billion (2019) |
| Total equity | Decrease $1.176 billion (2019) |
Number of employees | 1,800 (2019) |
| Website | extendedstayamerica.com |
Extended Stay America, Inc., based in Charlotte, North Carolina, manages a chain of economy apartment hotel properties throughout the United States and Canada. Prior to its acquisition in June 2021 by Blackstone Real Estate and Starwood Capital Group, the company was publicly traded alongside ESH Hospitality, Inc., a real estate investment trust that held ownership of the hotel properties. By 2022, the brand's portfolio had grown to encompass more than 650 locations.
History
Established on January 9, 1995 in Fort Lauderdale, Florida by former Viacom executives George D. Johnson, Jr. and Wayne Huizenga, Extended Stay America opened its initial hotels in August 1995 within South Carolina and Georgia. The company launched its public offering on December 14, 1995.
In April 1997, Extended Stay America broadened its reach by acquiring StudioPLUS and developing the budget-friendly Crossland Economy Studios brand, which it later divested for $285 million in December 2015. The corporate headquarters were moved to Charlotte, North Carolina in 2013.
The private equity firm The Blackstone Group purchased Extended Stay America in May 2004 for $3.1 billion, incorporating an additional 132 hotels from Homestead Studio Suites into its extended-stay portfolio managed under Extended Stay Hotels. Blackstone had previously acquired Homestead in 2001 for $740 million.
In June 2007, Blackstone sold the company to Lightstone Group for $8 billion in a transaction heavily financed through debt. The ensuing Great Recession drastically reduced travel demand and liquidity, prompting Extended Stay America to file for Chapter 11 bankruptcy protection in June 2009 while maintaining operations via debtor-in-possession financing.
A consortium consisting of Blackstone, Paulson & Co., and Centerbridge Partners acquired Extended Stay America at a bankruptcy auction for $3.93 billion in July 2010. The company successfully exited bankruptcy proceedings by October of that year.
In 2011, creditors initiated litigation against Blackstone over allegedly excessive debt incurred during the Lightstone acquisition; this dispute was resolved with a $10 million settlement paid by Blackstone in June 2013.
By April 2020, Blackstone and Starwood Capital Group had obtained minority stakes of 4.9% and 8.5%, respectively. These firms completed a full buyout in June 2021, returning the company to private ownership and removing it from Nasdaq trading.
Properties
By December 31, 2019, the company possessed and operated a total of 557 hotel locations, encompassing roughly 61,900 guest rooms. Additionally, it franchised or managed 73 properties, which together accounted for approximately 7,500 rooms.
External links
- Pages with broken file links
- Blackstone Inc. companies
- American companies established in 1995
- Hotels established in 1995
- Real estate companies established in 1995
- Companies based in Charlotte, North Carolina
- Companies formerly listed on the Nasdaq
- Extended stay hotel chains
- Hospitality companies of the United States
- Private equity portfolio companies
- Real estate investment trusts of the United States
- 1995 initial public offerings
- 1995 establishments in Florida
- Companies that filed for Chapter 11 bankruptcy in 2009
- 2013 initial public offerings
- 2021 mergers and acquisitions
- 5
- Companies of the United States by year of establishment