Extended Stay America
Encyclopedia
Extended StayAmerica is an American hotel
company. It was founded in 1995 in South Carolina
as an extended-stay hotel, catering to businesspeople.
The first Extended StayAmerica hotels opened in 1995 by a number of founders including management from Blockbuster Video and AutoNation
. In 1996, Extended Stay America acquired StudioPLUS, further continuing its growth. During this time, the company also acquired Crossland Economy Studios. The company also added various brands offering different levels of service, like Extended Stay Deluxe and StudioPLUS. By August 2001, the company was added to S&P 400
.
Blackstone took Extended Stay America private in May 2004 to form a new company, Extended Stay Hotels
. It paid close to $2 billion in cash as well as over $1 billion in debt. At the time, Extended Stay America had 425 hotels, but Blackstone added about 255 properties from other acquisitions including Homestead Village, which it agreed to buy for $600 million two months after the Sept. 11, 2001 terrorist attacks.
In 2007 Extended Stay Hotels
was sold to the Lightstone Group
for $8 billion. The sale was one of the biggest non casino hotel deals in history.
On June 16, 2009, the company filed for Chapter 11 bankruptcy, citing $7.1 billion in assets and $7.6 billion in liabilities. The company intends to keep operating all its properties through bankruptcy by using its substantial cash flow rather than debtor-in-possession financing
.
Extended StayAmerica was bought out of bankruptcy by an investment group including Blackstone Group
, Paulson & Co.
and Centerbridge Partners
in October 2010.
Hotel
A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
company. It was founded in 1995 in South Carolina
South Carolina
South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence...
as an extended-stay hotel, catering to businesspeople.
The first Extended StayAmerica hotels opened in 1995 by a number of founders including management from Blockbuster Video and AutoNation
AutoNation
AutoNation, the largest auto retailer in the USA, was founded in 1996 by entrepreneur H. Wayne Huizenga, also founder of Blockbuster and Waste Management. The company is headquartered in Fort Lauderdale, Florida. The current Chairman and CEO is Mike Jackson, former CEO of Mercedes Benz North America...
. In 1996, Extended Stay America acquired StudioPLUS, further continuing its growth. During this time, the company also acquired Crossland Economy Studios. The company also added various brands offering different levels of service, like Extended Stay Deluxe and StudioPLUS. By August 2001, the company was added to S&P 400
S&P 400
The S&P 400 MidCap Index, more commonly known as the S&P 400, is a stock market index from Standard & Poor's.It covers roughly the mid-cap range of US stocks.-Investing:The following ETFs attempt to track this index and sub-indexes:*Index Fund: &...
.
Blackstone took Extended Stay America private in May 2004 to form a new company, Extended Stay Hotels
Extended Stay Hotels
Extended Stay Hotels is a privately owned hotel brand that operates in the extended stay hotel market. The company is headquartered in Spartanburg, South Carolina....
. It paid close to $2 billion in cash as well as over $1 billion in debt. At the time, Extended Stay America had 425 hotels, but Blackstone added about 255 properties from other acquisitions including Homestead Village, which it agreed to buy for $600 million two months after the Sept. 11, 2001 terrorist attacks.
In 2007 Extended Stay Hotels
Extended Stay Hotels
Extended Stay Hotels is a privately owned hotel brand that operates in the extended stay hotel market. The company is headquartered in Spartanburg, South Carolina....
was sold to the Lightstone Group
The Lightstone Group
The Lightstone Group is a privately held real estate investment company which owns and operates a diversified portfolio of multifamily, office, industrial, hotel and retail properties. Lightstone has invested directly in individual real estate assets and in real estate operating companies...
for $8 billion. The sale was one of the biggest non casino hotel deals in history.
On June 16, 2009, the company filed for Chapter 11 bankruptcy, citing $7.1 billion in assets and $7.6 billion in liabilities. The company intends to keep operating all its properties through bankruptcy by using its substantial cash flow rather than debtor-in-possession financing
Debtor-in-possession financing
Debtor-in-possession financing or DIP financing is a special form of financing provided for companies in financial distress or under Chapter 11 bankruptcy process. Usually, this security is more senior than debt, equity, and any other securities issued by a company...
.
Extended StayAmerica was bought out of bankruptcy by an investment group including Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
, Paulson & Co.
Paulson & Co.
Paulson & Co. Inc. is a hedge fund sponsor owned by its employees and founded in 1994 by John Paulson.-Overview:Paulson & Co. Inc. is an employee-owned, hedge fund headquartered in New York, New York...
and Centerbridge Partners
Centerbridge Partners
Centerbridge Partners is a private equity investment firm focused on leveraged buyouts and distressed securities.The firm manages in excess of $5.5 billion of investor commitments and is based in New York City with an additional office in London, UK....
in October 2010.