Blackstone, Starwood Kick Off Massive CMBS Sale for Hotel Deal

  • $4.65 billion deal finances purchase by Blackstone, Starwood
  • Offering is one of the largest single-loan CMBS in a decade

Photographer: Jeff Greenberg/Getty Images

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A joint venture between Blackstone Group Inc. and Starwood Capital Group is financing its acquisition of Extended Stay America Inc. via a massive commercial mortgage-backed securities offeringBloomberg Terminal this week, one of the largest single-loan CMBS deals in a decade.

The $4.65 billion so-called single-asset, single-borrower (SASB) CMBS securitizes a loan originated by JPMorgan, Citigroup, and Deutsche Bank to fund most of Blackstone and Starwood’s roughly $6 billion acquisition of Extended Stay’s 560 hotels located throughout 40 states.