Extended Stay America Sells 32 Hotels to Provident Realty Advisors and Lodging Advisory Group
Extended Stay America and ESH Hospitality together announced the completed sales of two portfolios totaling 32 branded Extended Stay America hotels.
The company also recently sold 16 Extended Stay America branded hotels to Provident Realty Advisors, a Dallas-based developer with 27 years of real estate experience. The hotels acquired by Provident include 11 hotels in Texas and five in Oklahoma and will be operated by Aimbridge Hospitality. The disposition comes with franchise agreements for each of the 16 hotels. Additionally, Provident has committed to build or convert five additional Extended Stay America hotels in the future.
"We are thrilled to welcome LAG and Provident as our second and third franchise partners, respectively, into the Extended Stay America system," said Jonathan Halkyard, Extended Stay America's president and CEO. "With their deep industry experience combined with our industry-leading margins and our dominant position in the mid-priced extended stay segment in the lodging industry, we look forward to many years of success together."
"We are very excited to acquire a high-quality portfolio of extended stay hotels," said Dan Weber, partner and co-founder of LAG. "Our team has extensive extended-stay hotel experience and we are pleased to become a franchise partner with the leader in the mid-priced extended stay segment. We look forward to growing our Extended Stay America branded portfolio over the next several years."
"We are excited to partner with Extended Stay America as one of their first franchisees," said Leon Backes, CEO and owner of Provident. "We have a strong development and construction platform here at Provident that we will leverage to grow the ESA brand as a part of the ESA 2.0 initiative. Our goal as a franchise is to build a long and successful relationship with ESA."
When discussing Aimbridge's role in the transaction and as the hotel manager, Backes added, "Aimbridge was instrumental in a successful transaction. We are confident in Aimbridge's ability to improve the performance of these hotels through professional management. Their leadership team is experienced and their track record proven."
About Extended Stay America
Extended Stay America, Inc. and its brand Extended Stay America® is the leading brand in the mid-priced extended stay segment in the U.S with 634 hotels. Extended Stay America's subsidiary, ESH Hospitality, Inc. ("ESH"), is the largest lodging REIT in North America by unit and room count, with 559 hotels and more than 62,000 rooms in the U.S. Extended Stay America also manages or franchises an additional 75 Extended Stay America® hotels. Visit www.esa.com for more information.