Extended Stay Hotels files for $100 million IPO
Steve’s breakdown: The money from IPOs pay for a lot of stuff but this time we think they can’t ignor their marketing challenges. For instance, the Extended Stay Deluxe, Homestead Studio Suites and Studio Plus Deluxe Suites brands will soon all be under one brand, Extended Stay America.
BTW, last year we reported New CMO moves in at Extended Stay Hotels.
CHARLOTTE, NC: Extended Stay Hotels filed with the U.S. Securities and Exchange Commission on Monday for an initial public offering to raise up to US$100 million.
The Wall Street Journal reported that according to people familiar with the matter, proceeds from the IPO will be used to retire some of the company’s US$3.6 billion debt.
The move comes less than three years after Extended Stay Hotels, Charlotte, North Carolina, was bought at a bankruptcy auction for US$3.9 billion by Paulson & Co., Centerbridge Partners and Blackstone Group and follows the recent trend of private equity firms taking advantage of the buoyant stock market to exit investments.
Extended Stay Hotels is currently in the process of consolidating and reflagging their brands Extended Stay Deluxe, Homestead Studio Suites and Studio Plus Deluxe Suites under one brand, Extended Stay America.
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