US: Extended stay hotel brand Extended Stay America has announced plans to sell 28.3 million of its common shares at $18 to $21 per share in an initial public offering.
The projected share price values the company at up to $4.2 billion, and will net up to $594 million. Extended Stay America was bought for $3.9 billion at a bankruptcy auction in October 2010 by a consortium including members of hedge funds Paulson & Co, Centerbridge Partners and private equity firm Blackstone Group. Blackstone and Paulson each hold around 27.8 per cent of the company, which operates 682 properties in the US and Canada.
Extended Stay America invested $626 million in a renovation programme after the buyout. Led by former Starbucks CEO Jim Donald, the company reported net income of $22.3 million on revenue of $1 billion in 2012. Its three owners borrowed $3.6 billion in December 2012 to refinance the debt held by the company, reportedly recouping approximately half their equity investment.
www.extendedstayamerica.com</p
