The Firm is representing The Blackstone Group and Extended Stay Hotels in the sale of Extended Stay Hotels to The Lightstone Group for $8 billion. The transaction is subject to customary conditions and is expected to close in approximately two months.
Extended Stay Hotels is the largest owner of mid-price properties in the United States, with 683 properties and approximately 76,000 units located in 44 states and Canada. The company currently operates under five brands in the extended-stay segment: Extended Stay Deluxe, Extended Stay America, Homestead Studio Suites, StudioPlus and Crossland.
The Firm had represented Blackstone in its 2004 buyout of Extended Stay America, Inc., which was the largest public company owner of extended-stay hotels, and its 2001 acquisition of Homestead Studio Suites.
The Simpson Thacher team working on the transaction includes: Gregory Ressa, Sas Mehrara, Caylin Navo, Elizabeth Ferrell and Julia Noone (Real Estate); Brian Stadler and Irina Petrova (M&A); John Hart and Nancy Mehlman (Tax); John Lobrano (Capital Markets); Andrew O’Brien (Employee Benefits); Michael Isby (Environmental); Michael Naughton (Antitrust); and Mindy Lok (Intellectual Property).