STAY - Blackstone Starwood buys Extended Stay America for $6B

Blackstone Group (BX) and Starwood Capital Group to acquire hotel owner and operator Extended Stay America (STAY) in $6B deal, reports the WSJ.The deal is said to be the largest sale in the hotel sector during the Covid-19 period and represents 23% premium to the weighted average of company’s shares traded past 30 days.Through this acquisition, the two firms would acquire the 567 properties owned by Extended Stay.“Corporate America is going to be a heavy investor in capital spending and this business is going to benefit from that,” said Tyler Henritze, Blackstone’s head of acquisitions for the Americas.The deal is expected to close later this year.STAY shares up ~17.4% premarket and grew ~156% over the past year.

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Blackstone, Starwood buys Extended Stay America for $6B