Get the app today! Download iPhone App Download Android App

SUBSCRIBE

Blackstone Group And Starwood Capital Group Raise Their Buyout Bid For Hotel Operator Extended Stay America

Published on Jun 9 2021 10:27 AM in Hotel tagged: Trending Posts / Blackstone Group / Institutional Shareholder Services / ISS / Starwood Capital Group / Extended Stay America

Blackstone Group And Starwood Capital Group Raise Their Buyout Bid For Hotel Operator Extended Stay America

Extended Stay America has said that Blackstone Group and Starwood Capital Group have raised their buyout bid for the hotel operator by $1 per share, after a proxy adviser recommended shareholders vote against the $6 billion takeover offer.

Under the deal, a joint venture between funds managed by the two companies will pay Extended Stay shareholders a total of $20.50 per share, up from a previous offer of $19.50 per share in March.

"The $20.50 per paired share consideration represents the Blackstone/Starwood Capital joint venture's best and final offer," the companies said in a statement.

Reversed ISS Stance

The new bid comes a week after Institutional Shareholder Services (ISS) said the deal terms of the previous $6 billion offer did not appear to be sufficiently compelling.

However, ISS has now recommended shareholders of Extended Stay America to vote for Blackstone Group and Starwood Capital's raised takeover offer, the hotel operator has said.

ISS reversed its stance after the private equity firms increased their offer for Extended Stay by $1 per share to $20.50 per share.

"We are also pleased to note that the transaction is now supported by a number of our large shareholders who had previously expressed concerns," Extended Stay chairman Doug Geoga said in a statement.

The amended deal has been unanimously approved by the board of Extended Stay America. The deal is expected to close on June 16, the company said.

Extended Stay Information

Extended Stay specialises in economical temporary housing for healthcare professionals, and last year proved stronger than its peers even as bookings plunged across the US hotel industry due to the pandemic.

Extended Stay owns and operates 650 hotels in the US.

Previously Reported

It was reported earlier this year that Blackstone Group and Starwood Capital Group had agreed to buy Extended Stay America for $6 billion.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email