Extended Stay Hotels
Encyclopedia
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
.
Extended Stay Hotels and its brands currently own and operate over 680 hotels with approximately 76,000 rooms across the United States and Canada.
According to the company's website as of August 19, 2009, its brands included the following:
The company was formed in 2004 when the Blackstone Group
, owners of Homestead Studio Suites Hotels
, bought Extended Stay America
.
Extended Stay Hotels, its brands, and its management company, Homestead Village Management (HVM, LLC) were purchased from The Blackstone Group by The Lightstone Group
in 2007 for approximately US$8 Billion.
The company filed for Chapter 11 bankruptcy protection on June 15, 2009 but continues to operate using its cash flow instead of debtor-in-possession financing
.
In September of 2009, a group of creditors led by Starwood Capital Group
began negotiations to buy the entire chain for $3.5 billion.
However, in 2010, a group led by Centerbridge Partners
won control of the company in a nearly $4 billion buyout transaction as part of a highly contested auction.
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in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms...
brand that operates in the extended stay hotel market. The company is headquartered in Spartanburg, South Carolina
Spartanburg, South Carolina
thgSpartanburg is the largest city in and the county seat of Spartanburg County, South Carolina, United States. It is the second-largest city of the three primary cities in the Upstate region of South Carolina, and is located northwest of Columbia, west of Charlotte, and about northeast of...
.
Extended Stay Hotels and its brands currently own and operate over 680 hotels with approximately 76,000 rooms across the United States and Canada.
According to the company's website as of August 19, 2009, its brands included the following:
- Extended StayAmerica – 363 hotels
- Homestead Studio SuitesHomestead Studio Suites HotelsOriginally called Homestead Village, it was started in 1992 by Security Capital in Santa Fe, New Mexico with its first properties located in Dallas and Houston. In 2001, Homestead was purchased by the Blackstone Group...
– 132 hotels - Extended Stay Deluxe – 109 hotels
- StudioPLUS – 46 hotels
- Crossland – 34 hotels
The company was formed in 2004 when the 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 ,...
, owners of Homestead Studio Suites Hotels
Homestead Studio Suites Hotels
Originally called Homestead Village, it was started in 1992 by Security Capital in Santa Fe, New Mexico with its first properties located in Dallas and Houston. In 2001, Homestead was purchased by the Blackstone Group...
, bought Extended Stay America
Extended Stay America
Extended StayAmerica is an American hotel company. It was founded in 1995 in South Carolina as an extended-stay hotel, catering to businesspeople....
.
Extended Stay Hotels, its brands, and its management company, Homestead Village Management (HVM, LLC) were purchased from The Blackstone Group by 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...
in 2007 for approximately US$8 Billion.
The company filed for Chapter 11 bankruptcy protection on June 15, 2009 but continues to operate using its cash flow instead of 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...
.
In September of 2009, a group of creditors led by Starwood Capital Group
Starwood Capital Group
Starwood Capital Group is a private investment firm headquartered in Greenwich, Connecticut. The businesses owned by the firm include Starwood Property Trust, Inc., Starwood Energy Group Global, L.L.C., Starwood Real Estate Securities, L.L.C., and SH Group....
began negotiations to buy the entire chain for $3.5 billion.
However, in 2010, a group led by 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....
won control of the company in a nearly $4 billion buyout transaction as part of a highly contested auction.