Extended Stay America
{{Short description|American hotel chain}}
{{Infobox company
| name = Extended Stay America, Inc.
| logo = Extended Stay America logo.svg
| logo_size =
| image =
| image_size =
| former_name = Extended Stay Hotels
| traded_as = {{NASDAQ was|STAY}} (2013-21)
| type = Private company (1995-2013, since 2021)
Public company (2013-21)
| industry = Hotels
| founded = {{start date|1997|08|}} in Fort Lauderdale, Florida
| founders = {{ublist|Wayne Huizenga|George D. Johnson, Jr.}}
| hq_location = Charlotte, North Carolina, U.S.
| num_locations = 650 hotels (2022)
| area_served = North America
| key_people = Greg Juceam (CEO)
| revenue = {{decrease}} $1.218 billion (2019)
| net_income = {{decrease}} $0.165 billion (2019)
| assets = {{increase}} $4.030 billion (2019)
| equity = {{decrease}} $1.176 billion (2019)
| num_employees = 1,800 (2019)
| website = {{URL|https://www.extendedstayamerica.com/|extendedstayamerica.com}}
| footnotes = {{cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1507563/000162828020002318/stay-20191231.htm | title=Extended Stay America, Inc. 2019 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission}}
}}
File:Extended Stay Deluxe Tanasbourne - Hillsboro, Oregon.JPG]]
Extended Stay America, Inc., headquartered in Charlotte, North Carolina, is the operator of an economy apartment hotel chain in the United States and Canada. Prior to June 2021, when the company was acquired by Blackstone Real Estate and the Starwood Capital Group, it was publicly traded as a "paired share" with ESH Hospitality, Inc., a real estate investment trust and the owner of the hotels. As of 2022, there are 650+ Extended Stay America branded hotels.
History
Extended Stay America was founded on January 9, 1995 in Fort Lauderdale, Florida by George D. Johnson, Jr. and Wayne Huizenga, both former executives from Viacom and its subsidiary Blockbuster LLC.{{Sfn|Form S-1|1996|pp=3–4}} The first two Extended Stay America hotels opened in August 1995 in Spartanburg, South Carolina and Marietta, Georgia.{{Sfn|Form S-1|1996|p=21}}
The company became a public company via an initial public offering on December 14, 1995.{{Sfn|Form S-1|1996|p=12}}
Extended Stay America acquired the extended-stay hotel chain StudioPLUS on April 11, 1997.{{Cite web |title=Extended Stay America, Inc. |date=April 11, 1997 | work=Form 8-K | publisher=U.S. Securities and Exchange Commission |id=CIK 0001002579 | via=EDGAR |page=2 | url=https://www.sec.gov/Archives/edgar/data/1002579/0000950131-97-002815.txt }} The company also developed the Crossland Economy Studios brand as a budget extended-stay hotel brand.{{Cite web | title=Extended Stay America, Inc. | work=Form 10-K | publisher=U.S. Securities and Exchange Commission | id=CIK 0001002579 | via=EDGAR | page=10 | url=https://www.sec.gov/Archives/edgar/data/1002579/0000950131-97-001574.txt | date=March 4, 1997}} The 47 unit Crossland brand was sold to Westmont Hospitality Group for $285 Million in December, 2015.{{Cite web|title=Extended Stay America unloads Crossland hotels|url=https://www.travelweekly.com/Travel-News/Hotel-News/Extended-Stay-America-unloads-Crossland-hotels|access-date=2022-02-16|website=www.travelweekly.com|language=en}}
In 2013, the company moved its headquarters from Spartanburg, South Carolina to Charlotte, North Carolina.{{Cite news | url=https://www.bizjournals.com/charlotte/news/2017/06/14/extended-stay-america-settles-lawsuit-overtrade.html | title=Extended Stay America settles lawsuit over trade secrets against WoodSpring Hotels | first=Alex | last=Gailey | work=American City Business Journals | date=June 14, 2017}}
The Blackstone Group, a private equity firm, acquired Extended Stay America in May 2004 for US$3.1 billion in cash and debt. At the time of the merger, Extended Stay America operated 475 hotels; Blackstone increased that number with the addition of 132 from Homestead Studio Suites.{{Cite web | title=Extended Stay America, Inc. |work=Form 8-K | publisher=U.S. Securities and Exchange Commission | id=CIK 0001002579 | via=EDGAR | url=https://www.sec.gov/Archives/edgar/data/1002579/000094787104001336/f8k_051104.txt | date=May 11, 2004}}{{Cite press release | url=https://www.blackstone.com/the-firm/press-releases/article/the-blackstone-group-completes-acquisition-of-extended-stay-america-inc- | title=The Blackstone Group Completes Acquisition of Extended Stay America, Inc. | publisher=The Blackstone Group | date=11 May 2004}} Homestead, which was founded by Security Capital in 1992, had been acquired by Blackstone in November 2001 for US$740 million. All of Blackstone's extended-stay hotels consisting of the Crossland, Extended Stay America, Homestead, StudioPlus, and, eventually, Extended Stay Deluxe brands were managed together by Extended Stay Hotels.{{Cite press release | url=https://china.blackstone.com/the-firm/press-releases/article/security-capital-sells-homestead-village-to-blackstone-affiliate-for-$740-million | title=Security Capital Sells Homestead Village to Blackstone Affiliate for $740 Million | publisher=The Blackstone Group | date=20 November 2001}}
In June 2007, Blackstone sold Extended Stay Hotels to the Lightstone Group for US$8 billion.{{Cite press release | url=https://www.blackstone.com/the-firm/press-releases/article/the-lightstone-group-closes-$8-billion-acquisition-of-extended-stay-hotels-from-the-blackstone-group | title=The Lightstone Group Closes $8 Billion Acquisition of Extended Stay Hotels From The Blackstone Group | publisher=The Blackstone Group | date=12 June 2007}} The deal, financed with US$7 billion of debt, was one of several multibillion-dollar hotel and casino sales made that year.{{Cite news |work=Reuters | title=Lightstone to buy Extended Stay Hotels for $8 bln | url=https://www.reuters.com/article/extendedstay-lightstone/update-2-lightstone-to-buy-extended-stay-hotels-for-8-bln-idUSN1719742920070418 |date=April 17, 2007 }}
The Great Recession decimated leisure and business travel and Extended Stay faced shortages in liquidity stemming from the leveraged buyout by Lightstone. On June 15, 2009, Extended Stay America filed for bankruptcy protection under Chapter 11. Through debtor-in-possession financing, it was able to continue operating rather than to face liquidation.{{Cite news | last=Nadgir | first=Santosh | title=Debt-strapped Extended Stay files for bankruptcy |work=Reuters | url=https://www.reuters.com/article/us-extendedstay-idUSTRE55E4P520090615 |date=June 15, 2009}}
In July 2010, an investment consortium made up of Blackstone, Paulson & Co., and Centerbridge Partners bought Extended Stay America through a bankruptcy auction for US$3.93 billion.{{Cite news | last=Emery | first=Chelsea | title=US judge backs Extended Stay's reorganization plan | work=Reuters | url=https://www.reuters.com/article/extendedstay-hearing/update-4-us-judge-backs-extended-stays-reorganization-plan-idUSN2026640620100720 |date=July 20, 2010}}
After its successful reorganization, Extended Stay America emerged from bankruptcy in October 2010.{{cite news | url=https://www.cnbc.com/2010/10/08/extended-stay-emerges-from-chapter-11-after-buyout.html | title=Extended Stay Emerges From Chapter 11 After Buyout | agency=Associated Press | publisher=CNBC | date=8 October 2010}}
A year after the bankruptcy, Blackstone was sued by creditors of Extended Stay America alleging that Blackstone "skimmed" US$2.1 billion off of the sale to Lightstone and knew that the amount of debt would have been unsustainable for the hotel chain; Blackstone settled the lawsuit in June 2013 for US$10 million.{{Cite news | last=Hals | first=Tom |title=Blackstone settles Extended Stay lawsuit for $10 million | work=Reuters | url=https://www.reuters.com/article/us-extendedstay-blackstone/blackstone-settles-extended-stay-lawsuit-for-10-million-idUSBRE95J15M20130620 | date=June 20, 2013}}
In April 2020, The Blackstone Group acquired a 4.9% stake in the company and Starwood Capital Group acquired an 8.5% stake in the company.{{cite news | url=https://therealdeal.com/2020/04/22/blackstone-starwood-pick-up-stakes-in-extended-stay-america/ | title=Blackstone, Starwood pick up stakes in Extended Stay America | work=The Real Deal | date=April 21, 2020}} The company went private in June 2021 when Blackstone Real Estate and the Starwood Capital Group acquired the remaining shares and the company was delisted from Nasdaq.{{cite web |url= https://www.hotelbusiness.com/blackstone-starwood-capital-complete-acquisition-of-extended-stay-america/ |title=Blackstone, Starwood Capital complete acquisition of Extended Stay America |publisher=Hotel Business |date= June 16, 2021}}
Properties
References
{{reflist}}
- {{Cite web |title=Extended Stay America, Inc. | work=Form S-1 | publisher=U.S. Securities and Exchange Commission | id=CIK 0001002579 | via=EDGAR |url=https://www.sec.gov/Archives/edgar/data/1002579/0000950131-96-002048.txt |date=May 9, 1996 | ref={{harvid|Form S-1|1996}} }}
External links
- {{Official website|https://www.extendedstayamerica.com/}}
{{Blackstone Companies}}
{{Hotel chains}}
Category:Blackstone Inc. companies
Category:American companies established in 1995
Category:Hotels established in 1995
Category:Real estate companies established in 1995
Category:Companies based in Charlotte, North Carolina
Category:Companies formerly listed on the Nasdaq
Category:Extended stay hotel chains
Category:Hospitality companies of the United States
Category:Private equity portfolio companies
Category:Real estate investment trusts of the United States
Category:1995 initial public offerings
Category:1995 establishments in Florida
Category:Companies that filed for Chapter 11 bankruptcy in 2009