CHARLOTTE, N.C.—Extended Stay America and ESH Hospitality Inc. (ESH REIT) announced that they have commenced an initial public offering of 28,250,000 paired shares, consisting of Common Stock of Extended Stay America, Inc., and Class B Common Stock of ESH Hospitality, Inc., which are attached and trade together as a share.
The price is currently expected to be between $18.00 and $21.00 per share. The shares have been approved for listing on the New York Stock Exchange, subject to official notice of issuance, under the symbol “STAY.”
The company, owned by Blackstone Group LP, Centerbridge Partners LP and Paulson & Co., expects to raise as much as $593 million with the offering, which will mostly be used to repay the company’s debt.
Extended Stay America, which owns and operates nearly 700 hotels in the U.S. and Canada, is helmed by former Starbucks CEO Jim Donald.
Deutsche Bank Securities, Goldman, Sachs & Co. and J.P. Morgan will act as joint book-running managers and representatives of the underwriters for the offering.