For over 20 years, the Color Harmony series has provided widely acclaimed comprehensive expert color advice and insight into how color works, what can be achieved with the right color choices, and ...
Private equity firm backs Centerbridge bid for hotel chain
Blackstone Group LP is trying to buy back a piece of Extended Stay Inc., the 680-property hotel chain that it sold for $8 billion in 2007, The Wall Street Journal reports. Blackstone is joining an investor group led by Centerbridge Partners LP and Paulson & Co. that is making a $905 million bid for Extended Stay.
Blackstone plans to invest more than $100 million in the deal in exchange for a minority stake—ranging between 10 percent and 25 percent—when the midpriced hotel chain emerges from bankruptcy, sources told the Journal. Blackstone's move intensifies a bidding war for Extended Stay, whose bankruptcy case is the largest ever in the hotel industry. Earlier this month, the Centerbridge-Paulson group persuaded Extended Stay's board to back its offer over a rival bid led by Barry Sternlicht's Starwood Capital Group.
Extended Stay, which is viewed by many people in the industry as a good company with a bad balance sheet, has approached more than 80 potential investors seeking bids, one of the people familiar with the matter told the Journal. Blackstone's overture means new offers will likely come from the Starwood group and others, the paper reports.
Did you enjoy this article? Click here to subscribe to the magazine.
