Portfolio sale includes the franchising of all 14 hotels with total commitments to open an additional 7 Extended Stay America hotels
CHARLOTTE, N.C., Nov. 26, 2018 (GLOBE NEWSWIRE) -- Extended Stay America, Inc. and ESH Hospitality, Inc. (NASDAQ:STAY) (together, the “Company”) today announced the completed sale of 14 branded Extended Stay America hotels.
The portfolio of Extended Stay America branded hotels are located in Ohio, Georgia and Illinois. The hotels were acquired by a subsidiary of Singerman Real Estate, LLC (“SRE”), a Chicago-based opportunistic real estate investment firm that has a deep experience executing complex transactions and unlocking embedded value through the ownership of properties, real estate loans and operating companies. This disposition comes with franchise agreements for each of the 14 hotels. Sandpiper Hospitality will manage the 14 hotels for SRE. Additionally, SRE has committed to build or convert 7 additional Extended Stay America hotels in the future.
This portfolio sale by the Company marks 77 total dispositions since launching “ESA 2.0” in June 2016, including 72 in 2018. 71 of these disposed hotels retained long-term franchise or management agreements.
Extended Stay America’s President and Chief Executive Officer, Jonathan Halkyard, commented, “We are excited to welcome SRE to the STAY franchise family. With their industry experience of unlocking value in real estate, we know they will be successful and look forward to growing the relationship in the coming years.”
Mr. Halkyard continued, “We approach the halfway point of our targeted 150 refranchised hotels as part of our ESA 2.0 strategy with significant momentum, and we look forward to discussing additional portfolio sales in the future.”
SRE’s President and Managing Principal, Seth Singerman, commented, “We are thrilled to acquire the initial portfolio and grow it over time with Extended Stay America as they have a dominant market position in one of the most attractive segments of the entire lodging sector. We believe STAY’s continued successful execution of their strategic corporate and brand level initiatives provide a further positive tailwind to our investment relationship.”
About Extended Stay America
Extended Stay America, Inc. (“ESA”) and its brand Extended Stay America® is the leading brand in the mid-priced extended stay segment in the U.S with 627 hotels, with approximately twice as many rooms as its nearest competitor. ESA’s subsidiary, ESH Hospitality, Inc. (“ESH”), is the largest lodging REIT in North America by unit and room count, with 554 hotels and approximately 61,500 rooms in the U.S. ESA also manages or franchises an additional 73 Extended Stay America® hotels. Visit www.esa.com for more information.
Investors or Media:
About Singerman Real Estate, LLC
Singerman Real Estate, LLC is an opportunistic Chicago-based real estate investment firm focused on maximizing risk-adjusted returns through investments in both debt and equity across all major asset classes including office, retail, hotel, and multifamily, in addition to secondary real estate asset classes such as student housing and senior housing. The firm’s principals have directly led and sourced over $1 billion in hotel investments and more than $2.5 billion across all asset classes.
About Sandpiper Hospitality
Based in Richmond, VA, Sandpiper Hospitality is recognized as one of the leading management companies in extended stay hospitality. With 34 hotels in nine states under management and prolific growth on the immediate horizon, Sandpiper Hospitality will continue to expand its business to include additional market tiers and premium-branded hotels. The company will develop its portfolio through further ground-up development, selective acquisitions of performing and non-performing properties and third-party management with selected partners.
Source: Extended Stay America, Inc.