Blackstone to sell its chain of budget business hotels
US private equity firm the Blackstone group has agreed to sell its chain of budget business hotels, Extended Stay America, for $8b (£3.99b) to real estate investment group, Lightstone.
Blackstone is thought to be capitalising on the boom in the US real estate and private equity markets, according to a report today in the Financial Times.
The deal will give Blackstone a large return on its investment in the company, which was originally made three years ago, when it paid $3b (£1.5b) for the hotel group.
Lightstone is believed to have won a bidding war for the chain, despite a late offer from Fortress Investment Group, possibly worth over $100m (£49.8m) more than the $8b current sale price.
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By Emily Manson
E-mail your comments to Emily Manson](mailto:emily.manson@rbi.co.uk?subject=Blackstone to sell its chain of budget business hotels) here.
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