Economics
Paulson, Blackstone to Triple Money on Extended Stay: Mortgages
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Blackstone Group LP, Centerbridge Partners LP and Paulson & Co. are poised to almost triple their investment when Extended Stay America Inc. goes public, three years after the firms bought the hotel chain out of bankruptcy.
The initial public offering, set to raise as much as $593 million when it prices next week, will represent a surge in value for the owners after a rebound in the U.S. hotel market. For Blackstone investors, the deal is doubly sweet, as the firm previously made 3.5 times its money buying and selling Extended Stay during the buyout boom that ended in 2007.