GREENWICH, CT—Starwood Capital Group has acquired a portfolio of 50 economy extended-stay locations in the U.S. from Mount Kellett Capital Management LP and its partners, further building upon its growing InTown Suites brand.
The deal, which was completed by a controlled affiliate of Starwood Capital Group, consists of 6,106 rooms primarily in the Southeast, including markets in North Carolina, Florida, Texas, Georgia and Alabama. With this acquisition, InTown Suites will become the largest owner of economy extended-stay hotels in the United States, with 189 owned locations and 24,154 suites, according to the company. Starwood Capital Group purchased InTown Suites in 2013.
“The economy extended-stay sector continues to outperform other hospitality sectors, including luxury, and today’s transaction marks another important step in our effort to capitalize on this growth opportunity,” said Suril Shah, Starwood Capital Group’s acquisitions managing director. “Since acquiring InTown, we have seen its valuation increase by more than 30%, and we are confident that the upward trajectory will continue.”
“We are very focused on maintaining our leadership role by aggressively growing within our sector through acquisition and ground-up development,” said Jonathan Pertchik, CEO of InTown Suites. “We expect to apply the same discipline, process and focus that InTown has used in its other acquisitions to continue to outperform competitors.”