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The deal will give Blackstone a large return on its investment in the company, which was originally made three years ago, when it paid $3b (£1.5b) for the hotel group.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