Extended Stay Surges in Debut After $565 Million IPO
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Extended Stay America Inc., the largest owner of mid-price long-stay hotels in the U.S., jumped 19 percent in its trading debut after raising $565 million in an initial public offering.
Extended Stay closed at $23.87 after selling 28.25 million shares at $20 each. The company, led by former Starbucks Corp. Chief Executive Officer Jim Donald, initially offered the stock for $18 to $21. Charlotte, North Carolina-based Extended Stay, which was held equally by Blackstone Group LP, Centerbridge Partners LP and Paulson & Co., will use proceeds to pay debt, according to a regulatory filing. None of the firms sold shares.