Starwood Capital-Led Consortium Reaches Agreement to Invest Up to $905 Million in Extended Stay Hotels
Starwood Capital Group, TPG Capital and Five Mile Capital Partners announced today that they have reached an agreement to invest up to $905 million in Extended Stay Hotels, Inc. as part of a recapitalization plan that would allow the hotel chain to emerge from bankruptcy.
With a Valuation of Approximately $3.9 Billion, Transaction Would Significantly Strengthen Extended Stay's Balance Sheet, Reduce its Debt Load and Boost Cash Reserves
Starwood Capital's Barry Sternlicht, One of the World's Most Respected Hotel Executives, Would Serve as Chairman of Extended Stay
Starwood Capital Group, TPG Capital and Five Mile Capital Partners announced today that they have reached an agreement to invest up to $905 million in Extended Stay Hotels, Inc. as part of a recapitalization plan that would allow the hotel chain to emerge from bankruptcy. The proposal, which was filed with the U.S. Bankruptcy Court, Southern District of New York earlier today, would allow Extended Stay, which would be valued at approximately $3.9 billion post-transaction, to emerge from bankruptcy with a significantly stronger balance sheet, reduced debt load and significant cash reserves to invest in its properties and operations. The Extended Stay Board of Directors has determined the offer is superior to a previous agreement with Centerbridge Partners and Paulson & Co., which has been terminated.
The consortium's plan is not conditioned on any financing or due diligence provisions, but is subject to approval of the Bankruptcy Court.
