Barry Sternlicht, best known for founding boutique W Hotels, has persuaded Extended Stay Inc. to back his bid to take the midpriced hotel chain out of bankruptcy-court protection. Earlier this month, Extended Stay had accepted a reorganization plan proposed by two investment firms, Centerbridge Partners LP and Paulson & Co. But the chain's board has switched support to the plan of a group led by Mr. Sternlicht's Starwood Capital Group. Mr. Sternlicht's effort is far from a done deal. He could still be outbid, and he will need the bankruptcy-court judge's approval. But a victory would end the largest hotel-bankruptcy case ever and one of the most dramatic commercial-real-estate collapses of the recession.

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