A 50/50 joint venture consisting of Blackstone Real Estate Partners and Starwood Capital Group is planning to acquire Extended Stay America, Inc. (ESA) and its paired-share REIT, ESH Hospitality, Inc. in an all-cash transaction valued at $6 billion.
The $19.50 per share consideration represents a premium of 23.3 percent over the 30-day volume-weighted average share price, ending March 12, and a premium of 15.1 percent over the closing stock price.
“After a thorough review of the company’s business plan, the boards concluded that the immediate cash premium offered by this transaction is compelling for stockholders,” said Doug Geoga, chairman of the boards of ESA. “We are delighted with this outcome.”
Completion of the transaction is expected to occur in the second quarter of 2021.