Blackstone to sell its chain of budget business hotels

18 April 2007 by
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The deal will give Blackstone a large return on its investment in the company, which was originally made three years ago, when it paid $3b (£1.5b) for the hotel group.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

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