Extended Stay America, Inc. and its paired-share REIT, ESH Hospitality, Inc. announced that it has signed a definitive agreement to be acquired by a 50/50 joint venture between funds managed by Blackstone Real Estate Partners and Starwood Capital Group for $19.50 per paired share in an all-cash transaction valued at approximately $6 billion.
The transaction has been unanimously approved by ESA’s board of directors and has also been approved by ESH’s board of directors. Completion of the transaction, which is expected to occur in the second quarter of 2021, is contingent upon customary closing conditions, including approval of the company’s stockholders. The transaction is not contingent on receipt of financing. In connection with the transaction, an affiliate of Starwood Capital, which owns approximately 9.4% of company’s outstanding paired shares, has entered into a support agreement whereby it has agreed to vote its shares in favor of the transaction.
Photo: Courtesy of Extended Stay America