NEW YORK (AP) -- Hotel operator Extended Stay America now anticipates raising up to $500 million from its initial public offering, which is more than it expected three months ago.
In July the Charlotte, N.C. company said in a regulatory filing that it planned to raise up to $100 million from its IPO.
Extended Stay America's latest filing with the Securities and Exchange Commission on Tuesday still doesn't disclose how many shares are expected in the offering or what the projected price range is.
The IPO will include shares of its common stock that will be paired with class B shares of real estate investment trust ESH Hospitality Inc. The offering is expected to help ESH Hospitality maintain its qualification as a REIT.
Extended Stay America said it plans to use most of its proceeds to buy additional class A shares of ESH Hospitality so that it maintains ownership of 55 percent of the value of ESH. It expects any remaining proceeds to be used for general corporate purposes. 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.
Extended Stay America 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.
The shares are expected to list on the New York Stock Exchange under the "STAY" ticker symbol.
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