Deals
Blackstone, Starwood to Buy Hotel Operator for $6 Billion
- Firms are joining to pay $19.50 per share for Extended Stay
- Lodging company’s business model held up during tough year
Photographer: Bruce Bennett/Getty Images
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Blackstone Group Inc. and Starwood Capital Group agreed to buy Extended Stay America Inc., an operator of hotels and motels, for about $6 billion, betting the industry will recover as progress in fighting the Covid-19 pandemic accelerates.
The two private-equity giants, whose past bets on hotels have helped shape the modern hospitality industry, are paying $19.50 per share for the hotel company, a roughly 15% premium over Extended Stay’s closing price on Friday, according to a statement on Monday.