Extended Stay America plans to go public

Hotel operator Extended Stay America planning initial public offering

Associated Press

NEW YORK (AP) -- Extended Stay America is planning to go public.

In a filing with the Securities and Exchange Commission on Monday, the hotel operator said that its initial public offering will include shares of its common stock that will be paired with class B shares of real estate investment trust ESH Hospitality Inc.

The filing did not disclose how many shares are expected in the IPO or give a projected price range.

According to the filing, the IPO will help ESH Hospitality maintain its qualification as a REIT.

Extended Stay America said it plans to use its proceeds to buy additional class A shares of ESH Hospitality so that it maintains ownership of 55 percent of the value of ESH. The REIT said that it expects to use its portion of the proceeds from the IPO, as well as proceeds from the sale of class A shares to Extended Stay America, to repay some debt. It expects any remaining proceeds to be used for general corporate purposes.

The shares are expected to list on the New York Stock Exchange. The company did not give the ticker symbol that it expects to use.

Extended Stay America Inc., which is based in Charlotte, N.C., has 684 hotels in 44 states in the U.S. and in Canada. The company said that 630 of its hotels are under its namesake brand.

Its hotels are meant for guests looking for an affordable option when they are anticipating a somewhat lengthy stay. Guests typically include business travelers, professionals on temporary jobs or training assignments, people relocating, temporarily displaced by a storm, home purchase or other event and any others in need of temporary housing.

Fully furnished rooms include kitchens, free WiFi, complimentary grab-and-go breakfast, flat screen TVs and limited housekeeping services. Rooms are normally rented on a weekly basis or more long term.

View Comments (0)