Blackstone and Starwood Funds Group to Acquire Extended Remain The united states

CHARLOTTE, N.C., March 15, 2021 (World NEWSWIRE) — Prolonged Continue to be America, Inc. (“ESA”) and its paired-share REIT, ESH Hospitality, Inc. (“ESH” and alongside one another with ESA, the “Company”) (NASDAQ: Keep) declared today that it has signed a definitive agreement to be acquired by a 50/50 joint enterprise amongst cash managed by Blackstone Authentic Estate Associates (“Blackstone”) and Starwood Funds Team (“Starwood Capital”) for $19.50 per paired share in an all-funds transaction valued at somewhere around $6 billion.

The $19.50 per paired share thing to consider represents a high quality of 23.3{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} more than the 30-day quantity-weighted common share price tag ending March 12, 2021 and a high quality of 15.1{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} over the closing stock price on March 12, 2021.

Doug Geoga, Chairman of the Boards of the Business reported, “After a thorough assessment of the Company’s company prepare, the Boards concluded that the speedy hard cash quality available by this transaction is persuasive for stockholders. We are delighted with this final result.”

Bruce Haase, CEO and President of the Company reported, “We are happy to announce this transaction with Blackstone and Starwood Funds, two of the most experienced traders in the hospitality room with extraordinary track documents of making value in a vast assortment of actual estate belongings, and we appear forward to this partnership and continued progress.” He included, “The Boards and senior administration are especially grateful to the fantastic workforce of leaders and associates who have manufactured this organization these kinds of a chief in the lodging sector and we are assured in the Company’s ongoing achievement beneath non-public ownership.”

Tyler Henritze, head of US acquisitions for Blackstone True Estate commented, “Travel and leisure is 1 of Blackstone’s maximum conviction expense themes, and we have confidence in the prolonged stay product. We helped generate this enterprise almost 20 years in the past, and believe our expertise places us in a exclusive place to add extended-time period benefit.”

Barry Sternlicht, CEO of Starwood Capital, included, “Extended Remain has demonstrated resilience more than the previous 12 months regardless of persistent troubles due to federal government lockdowns and journey constraints. We are fired up about the Company’s expansion chance as constraints relieve and we’re assured that, in partnership with Blackstone and the Corporation, our crew has the ideal practical experience to drive ongoing achievements.”

The transaction has been unanimously permitted by ESA’s Board of Administrators and has also been permitted by ESH’s Board of Directors. Completion of the transaction, which is anticipated to manifest in the second quarter of 2021, is contingent upon customary closing situations, including approval of the Company’s stockholders. The transaction is not contingent on receipt of funding. In link with the transaction, an affiliate of Starwood Capital, which owns somewhere around 9.4{540ccc4681f92a8237c705b0cdebbb9da373ec200da159e6cc1fd9f393be00be} of Company’s exceptional paired shares, has entered into a assist settlement whereby it has agreed to vote its shares in favor of the transaction.

The Enterprise does not expect to pay out its standard quarterly distribution all through the pendency of the transaction other than for the earlier declared $.09 distribution on March 26, 2021. However, under the phrases of the merger arrangement, the acquiror may perhaps ask for that ESA shell out a exclusive distribution immediately prior to the closing of up to $1.75 for each paired share, in which situation the income thing to consider paid in the merger will be diminished by the total of the distribution.

Goldman Sachs & Co. LLC is serving as fiscal advisor to the Enterprise and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as lawful counsel.

J.P. Morgan and Citigroup International Markets Inc. are performing as financial advisors and delivering credit card debt funding to Blackstone and Starwood. Simpson Thacher & Bartlett LLP is performing as legal advisor to Blackstone, and Kirkland & Ellis LLP is acting as lawful advisor to Starwood Cash.

More Information and Exactly where to Discover It

This conversation might be deemed to be solicitation product in respect of the proposed acquisition of Prolonged Continue to be America, Inc. and ESH Hospitality, Inc. (collectively, the “Companies”) by a joint undertaking of Blackstone True Estate Companions and Starwood Money Team. In relationship with the proposed transaction, the Corporations will file with the Securities and Trade Commission (“SEC”) and furnish to their stockholders a joint proxy assertion and other appropriate paperwork. STOCKHOLDERS OF THE Businesses ARE Advised TO Examine THE JOINT PROXY Statement WHEN IT Will become Out there (Such as ALL AMENDMENTS AND Health supplements THERETO) Since IT WILL Have Essential Facts. Investors could attain a absolutely free copy of the joint proxy assertion (when it gets obtainable) and other applicable documents submitted by the Corporations with the SEC at the SEC’s Website site at http://www.sec.gov. The joint proxy statement and these other paperwork when filed with the SEC might also be obtained for free from the Investor Relations area of the Companies’ world wide web web site (https://www.aboutstay.com/trader-relations) or by directing a request to the Businesses at ir@esa.com. Copies of paperwork filed by the Companies with the SEC may well also be acquired for free of charge at the SEC’s Net website at http://www.sec.gov.

Participants in Solicitation

The Businesses and their respective officers and directors may well be deemed to be members in the solicitation of proxies from the stockholders of the Organizations in relationship with the proposed transaction. Facts about the Companies’ government officers and directors is established forth in their Once-a-year Report on Sort 10-K, which was submitted by each of ESA and ESH with the SEC on February 25, 2021, and the joint proxy assertion for the 2020 annual conferences of the stockholders of the Organizations, which was submitted with the SEC on April 23, 2020. Buyers may perhaps receive additional detailed data regarding the immediate and indirect passions of the respective govt officers and administrators of the Corporations in the acquisition by studying the Existing Reviews on Type 8-K to be submitted by the Corporations in relationship with the announcement of the proposed transaction and in the preliminary and definitive joint proxy assertion about the proposed transaction when they are submitted with the SEC. When readily available, stockholders may acquire cost-free copies of these documents as explained in the previous paragraph.

Forward-Looking Statements

Selected statements contained in this doc represent “forward-searching statements” within just the this means of the federal securities laws. All statements other than statements of historic points included in this document may be ahead-searching, which includes statements regarding, amongst other matters, the Companies’ means to satisfy their personal debt support obligations, future funds expenditures (together with upcoming acquisitions and lodge renovation applications), their distribution procedures, their growth, progress and franchise prospects, anticipated rewards or use of proceeds from inclinations, their programs, goals, plans, beliefs, company tactics, small business problems, benefits of operations, financial place and organization outlook, small business traits and foreseeable future events, which includes the COVID-19 pandemic, its outcomes on the foregoing, federal government actions taken in reaction to the COVID-19 pandemic and steps that the Corporations have or approach to just take in response to the pandemic and this kind of consequences. When applied in this doc, the text “believe,” “expect,” “anticipate,” “intend,” “estimate,” “will,” “look ahead to” and variations of these kinds of words and phrases or related expressions are supposed to detect forward-hunting statements. The forward-wanting statements are not historical points, and are based on the Companies’ existing anticipations, beliefs, estimates and projections, and various assumptions, a lot of of which, by their nature, are inherently unsure and further than their regulate. There can be no assurance that management’s anticipations, beliefs, estimates and projections will be accomplished, and true outcomes may differ materially from what is expressed in or indicated by the ahead-wanting statements.

There are a amount of dangers, uncertainties and other crucial aspects, numerous of which are further than the Companies’ regulate, that could result in their genuine outcomes to differ materially from the ahead-seeking statements contained in this document. The probable challenges and uncertainties contain, between other people, the possibility that Prolonged Keep The us, Inc. could be not able to get hold of required stockholder approvals or that other conditions to closing the proposed mergers may well not be satisfied, these that the proposed mergers will not near or that the closing may be delayed common economic disorders the proposed mergers may possibly involve unanticipated fees, liabilities or delays threats that the transaction disrupts existing programs and functions of the Corporations the consequence of any authorized proceedings similar to the proposed mergers the occurrence of any party, change or other instances that could give increase to the termination of the merger arrangement. For extra aspects on these and other possible hazards and uncertainties, please refer to the joined proxy assertion when filed and the documents that the Providers file with the SEC. All ahead-wanting statements discuss only as of the day of this document or, in the circumstance of any doc integrated by reference, the date of that document. The Businesses are under no duty to update any of the ahead-seeking statements after the day of this document to conform to real results, besides as needed by relevant legislation.

About the Business

Prolonged Continue to be The united states, Inc. (“ESA”) and its brand Extended Stay America® is the major brand in the mid-priced prolonged remain phase in the U.S. with 650 motels. ESA’s subsidiary, ESH Hospitality, Inc., is the largest lodging REIT in North America by unit and home depend, with 564 hotels and somewhere around 62,500 rooms in the U.S. ESA also franchises an supplemental 86 Prolonged Keep America® lodges. Check out www.esa.com for additional details.

About Starwood Funds Group

Starwood Capital Team is a private expense company with a main aim on world wide authentic estate, strength infrastructure and oil & fuel. The Firm and its affiliate marketers maintain 16 offices in seven international locations all around the earth, and at this time have around 4,100 staff. Due to the fact its inception in 1991, Starwood Capital Team has elevated around $55 billion of fairness funds, and at this time has in extra of $75 billion of property beneath management. Via a sequence of comingled option funds and Starwood Genuine Estate Earnings Rely on, Inc. (SREIT), a non-mentioned REIT, the Company has invested in virtually every single classification of serious estate on a global foundation, opportunistically shifting asset lessons, geographies and positions in the capital stack as it perceives possibility/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Believe in (NYSE: STWD), the premier professional home finance loan actual estate expenditure believe in in the United States, which has effectively deployed above $63 billion of funds since inception and manages a portfolio of about $17 billion throughout credit card debt and fairness investments. More than the past 29 many years, Starwood Money Team and its affiliate marketers have successfully executed an investment strategy that will involve making enterprises in the two the personal and general public marketplaces. Extra data can be discovered at starwoodcapital.com.

About Blackstone True Estate

Blackstone is a worldwide leader in actual estate investing. Blackstone’s real estate organization was launched in 1991 and has $187 billion of trader funds under management. Blackstone is just one of the most significant home owners in the entire world, possessing and functioning belongings throughout each individual big geography and sector, like logistics, multifamily and single-household housing, office, hospitality and retail. Our opportunistic resources seek out to obtain undermanaged, well-situated property throughout the environment. Blackstone’s Main+ system invests in significantly stabilized real estate globally as a result of regional open-ended resources targeted on high-excellent property and Blackstone Serious Estate Cash flow Believe in, Inc. (BREIT), a non-stated REIT that invests in U.S. money-creating property. Blackstone Real Estate also operates a single of the foremost worldwide authentic estate credit card debt enterprises, supplying complete funding methods across the capital composition and possibility spectrum, such as management of Blackstone Mortgage loan Have faith in (NYSE: BXMT).

Contacts

Firm
Rob Ballew
ir@esa.com
(980) 345-1546

Blackstone
Ilana Mouritzen
Ilana.Mouritzen@Blackstone.com
Tel: (212) 583-5776

Starwood Cash Group
Tom Johnson / Dan Scorpio
Abernathy MacGregor Group
tbj@abmac.com / dps@abmac.com
Tel: (212) 371-5999