M&A Deal Summary

The Blackstone Group and Starwood Capital Group Acquire Extended Stay America

On March 15, 2021, private equity firm The Blackstone Group and private equity real estate Starwood Capital Group acquired leisure company Extended Stay America for 6.0B USD

Acquisition Highlights
  • This is The Blackstone Group’s 16th and Starwood Capital Group’s 1st transaction in the Leisure sector.
  • This is The Blackstone Group’s 22nd and Starwood Capital Group’s largest (disclosed) transaction.
  • This is The Blackstone Group’s 172nd and Starwood Capital Group’s 4th transaction in the United States.
  • This is The Blackstone Group’s 6th and Starwood Capital Group’s 1st transaction in North Carolina.

M&A Deal Summary

Date 2021-03-15
Target Extended Stay America
Sector Leisure
Buyer(s) The Blackstone Group
Starwood Capital Group
Deal Type Going Private
Deal Value 6.0B USD
Advisor(s) Goldman Sachs (Financial)
Fried Frank Harris Shriver & Jacobson (Legal)

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 278 of 335
Sector (Leisure) 16 of 16
Type (Going Private) 28 of 36
State (North Carolina) 6 of 6
Country (United States) 172 of 210
Year (2021) 4 of 27
Size (of disclosed) 22 of 171
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-03-03 MTAR Technologies

Hyderabad, India

MTAR Technologies produces precision-engineered components for nuclear power, aerospace and defense applications. The company supplies precision engineered components for nuclear power, aerospace and defense applications within India. It also exports precision engineered components for aerospace applications. MTAR Technologies was founded in 1969 and is based in Hyderabad, India.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-03-18 Desotec

Roeselare, Belgium

Desotec is an environmental service company focusing on mobile purification solutions mainly based on activated carbon technology. Desotec was founded in 1990 and is based in Roeselare, Belgium.

Buy -
Buyer

Starwood Capital Group

Greenwich, Connecticut, United States

Investor


Category Private Equity Real Estate
Founded 1991
PE ASSETS 60.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Starwood Capital Group is a privately held global investment management firm that specializes in real estate related investments across North America, Europe, and Asia. Starwood can invest across the capital structure including equity, preferred equity, mezzanine debt and senior debt. Property types of interest include multifamily, office, retail, hotel, industrial, residential and commercial land, mixed-use and golf. Starwood was formed in 1991. The Firm is affiliated with energy investment group, Starwood Energy Group. Starwood Capital is based in Greenwich, Connecticut with additional offices in San Francisco, Washington DC, Atlanta, London, Paris, Luxembourg, Mumbai and Sao Paulo.


DEAL STATS #
Overall 6 of 8
Sector (Leisure) 1 of 1
Type (Going Private) 2 of 2
State (North Carolina) 1 of 1
Country (United States) 4 of 5
Year (2021) 1 of 2
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-25 Forestar Group

Arlington, Texas, United States

Forestar Group is a residential and mixed-use development company. The Company owns directly or through ventures interest in 55 residential and mixed-use projects comprised of approximately 7,000 acres of real estate located in 11 states and 15 markets. Forestar also owns about 590,000 net acres of oil and gas fee minerals, principally in Texas, Louisiana, Alabama and Georgia. Forestar Group was founded in 1954 and is based in Arlington, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-12-29 Land Tejas

Houston, Texas, United States

Land Tejas is a residential development company. Land Tejas was founded in 1997 and is based in Houston, Texas.

Buy -