WH - Extended Stay's $6B deal boosts investors' interest in hotel REIT stocks

A number of hotel REITs gain after Blackstone and Starwood Capital Group agreed to acquire Extended Stay Americas ([[STAY]] +13.3%) in a $6B deal, even though most other publicly traded lodging name don't focus solely on the extended stay sector.Among names on rise in midday trading (New York time): Chatham Lodging Trust ([[CLDT]] +3.1%), Apple Hospitality ([[APLE]] +4.6%), Host Hotels ([[HST]] +3.9%), and Pebblebrook Hotel Trust ([[PEB]] +3.0%).Of course, the pace of COVID-19 vaccinations has also been helping hotel stocks as that boosts confidence in travel resuming.In premarket trading, Extended Stay's stock had topped the merger agreement price of $19.50 per paired share, but in regular trading the stock hasn't risen above $19.44.Evercore ISI analyst Richard Hightower said the merger price for STAY is valued roughly at 16x FY2020 adjusted EBITDA. "While the numbers still aren't comparable at the moment, a mid-teens multiple would appear to represent a pretty hefty discount

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Extended Stay's $6B deal boosts investors' interest in hotel REIT stocks