When Extended Stay America, owned by Blackstone Group, Centerbridge Partners LP and Paulson and Co., filed plans for an initial public offering back in July, the company filed with a placeholder amount of $100 million. But according to this report from Businessweek, the company now expects the IPO to raise as much as $500 million.
Underwriting of the sale will be completed by Deutsche Bank AG, Goldman Sachs Group Inc. and JPMorgan Chase and Co.
According to Bloomberg, Extended Stay is selling paired common stock, comprising one share of the company and one Class B share of a related entity that seeks to be taxed as a real estate investment trust. Each paired share will trade as one unit.
Extended Stay expects net proceeds from the IPO of about $461 million. The hotel chain is valued at about $3 billion to $4 billion, excluding debt.
Last month, Blackstone Group announced that Hilton filed for an IPO, estimated at $1.25 billion.