NEW YORK— Offering further proof that a real estate slowdown has not hampered property deal making, the Lightstone Group has agreed to purchase Extended Stay Hotels from private equity giant Blackstone Group for $8 billion. The deal seemingly establishes Lightstone as the dominant company in a fast-growing market for travelers seeking long-term accommodations. Lightstone, based in Lakewood, NJ, will finance the purchase with $1 billion in cash and $7 billion in debt. Blackstone will retain a 10% stake in the company, Lightstone’s chief executive, David Lichtenstein, said. Extended Stay Hotels, which offers rooms with kitchenettes and primarily serves business travelers, operates under several brands, including Homestead Studio Suites and Crossland Economy Studios. The deal will add 683 properties, with a total of 76,000 rooms, to the more than 18,000 residential units and approximately 30 million square feet Lightstone owns. “With this purchase,” Lichtenstein said, “we’ll control almost 60% of the extended-stay niche.”
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