M&A Deal Summary

The Blackstone Group and Paulson Acquire Extended Stay America

On October 8, 2010, private equity firm The Blackstone Group and hedge fund Paulson acquired leisure company Extended Stay America for 3.9B USD

Acquisition Highlights
  • This is The Blackstone Group’s 11th and Paulson’s 1st transaction in the Leisure sector.
  • This is The Blackstone Group’s 39th and Paulson’s largest (disclosed) transaction.
  • This is The Blackstone Group’s 96th and Paulson’s 1st transaction in the United States.
  • This is The Blackstone Group’s 3rd and Paulson’s 1st transaction in North Carolina.
Investment Fate
  • Extended Stay America went public in 2013.
  • Extended Stay America was sold to a consortium of financial buyers in 2021 for 6.0B USD.

M&A Deal Summary

Date 2010-10-08
Target Extended Stay America
Sector Leisure
Buyer(s) The Blackstone Group
Paulson
Deal Type Special Situations/Distressed
Deal Value 3.9B USD

Target

Extended Stay America

Charlotte, North Carolina, United States
Extended Stay America location in Destin, Florida.
Extended Stay America location in Destin, Florida.
Extended Stay America is an operator of moderate-price extended-stay hotels in North America, with 600+ hotels and approximately 76,000 rooms located in 44 states and Canada. The Company currently operates under five brands in the extended-stay segment: Extended Stay Deluxe, Extended Stay America, Homestead Studio Suites, StudioPlus and Crossland. Extended Stay America is headquartered in Charlotte, North Carolina.

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Buyer(S) 2

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 131.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York City.


DEAL STATS #
Overall 144 of 335
Sector (Leisure) 11 of 16
Type (Special Situations/Distressed) 1 of 3
State (North Carolina) 3 of 6
Country (United States) 96 of 210
Year (2010) 8 of 9
Size (of disclosed) 39 of 171
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-18 MBPPL

New Delhi, India

MBPPL was incorporated with the vision to become an energy developer in India. It is one of the fastest growing integrated power companies in India, operating across a synergetic span of verticals comprising Power Generation, Power Trading, EPC, Development and Renewables (Solar).

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-11-16 Cineworld Cinemas

Chiswick, United Kingdom

Cineworld Cinemas Ltd. is a cinema group focused on showing a wide variety of content such as Bollywood and Live events; including Opera, Ballet and Rugby in 3D. Cineworld participates in the Tesco Clubcard programme and operates the only cinema subscription service in the UK, the Unlimited Card. Cineworld Cinemas was formed in 1995 and is based in Chiswick, United Kingdom.

Sell USD103M
Buyer

Paulson

Investor Investor Investor


Category Hedge Fund
Founded 1994
PE ASSETS 8.7B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Paulson & Co. Inc. is a diversified investment management firm focused on a variety of strategies. Paulson & Co. Inc. was formed in 1994 and is headquartered in New York City.


DEAL STATS #
Overall 1 of 3
Sector (Leisure) 1 of 1
Type (Special Situations/Distressed) 1 of 1
State (North Carolina) 1 of 1
Country (United States) 1 of 2
Year (2010) 1 of 1
Size (of disclosed) 1 of 2
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-08-14 Steinway & Sons

Hamburg, Germany

Steinway & Sons is a designer and manufacturer of digital sound systems; and provides piano restoration services. Steinway sells its products through dealers. Steinway & Sons was founded in 1853 and is based in Hamburg, Germany.

Buy $512M