Hotel Chain Extended Stay Files For $100 Million IPO | Reuters
Hotel chain Extended Stay America Inc ESAIN.UL has filed with regulators to raise up to $100 million in an initial public offering less than three years of emerging from bankruptcy protection.
The chain was sold for $3.9 billion at a bankruptcy auction in October 2010 to a group that included hedge funds Paulson & Co and Centerbridge Partners, and private equity firm Blackstone Group LP (BX.N), who each own about a third of the company.
Extended Stay has hired Starbucks Corp's (SBUX.O) former chief executive James Donald to lead the company as it looks to revitalize itself.
The U.S. lodging industry generated revenue of more than $162 billion in 2012, according to Smith Travel Research.
Private equity owners have been looking to take advantage of the recent rise in the stock market to exit investments made during the financial crisis.
Other recent large deals involving private equity-backed companies include SeaWorld Entertainment (SEAS.N) Inc and Norwegian Cruise Line Holdings Ltd (NCLH.O).
