Lightstone Group closes on $8b hotel buy from Blackstone.The Lightstone Group, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , one of the largest private real estate owners in the country, announced today that through an affiliate it closed its previously announced acquisition of Extended Stay Hotels Extended Stay Hotels (ESH) is a hotel brand that is the culmination of a rapid expansion in the extended stay hotel extended stay lodging market. Extended Stay Hotels is now one of the most recognized brands in the extended stay industry. from affiliates of The Blackstone Group for $8 billion. Extended Stay Hotels is the largest owner of mid-price extended-stay hotels in the United States, with 687 hotels and approximately 76,000 rooms located in 44 states and Canada. The company currently operates under five brands in the extended-stay segment: Extended Stay Deluxe, Extended Stay America The first Extended Stay America hotels opened in 1995 by a number of founders including management from Blockbuster Video and AutoNation. In 1996, Extended Stay America acquired StudioPLUS, further continuing its growth. , Homestead Studio Suites, StudioPlus and Crossland. Equity investors alongside The Lightstone Group include affiliates of The Blackstone Group and Arbor Realty Trust Inc. "The Extended Stay acquisition marks the entry by Lightstone into another sector, and we are excited about the opportunity to deliver value to our partners in this venture," said David Lichtenstein, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Lightstone Group. "Jonathan Gray and Bill Stein of Blackstone were the consummate professionals and Blackstone's continued investment in Extended Stay substantiates the transaction value and signifies their confidence in our ability to execute our business strategies." The Lightstone Group's team was directed by Michael M. Schurer, CFO See Chief Financial Officer. ; Joshua Kornberg, director of acquisitions; and Joseph E. Teichman, general counsel. Lead mortgage and mezzanine financing was provided by Rob "Big Loan" Verrone and Peter Scola of Wachovia Bank, N.A., and Randy Rieff of Bear Stearns. Tony Fineman of Wachovia Bank, N.A., was the deal manager. Merrill Lynch Mortgage Lending, Inc. and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , N.A. also provided financing. Citi, led by Paul Ingrassia, acted as lead financial advisor to Lightstone Group. Herrick, Feinstein LLP LLP - Lower Layer Protocol , led by Sheldon Chanales, and Proskauer Rose LLP, led by Peter Fass, acted as legal advisors to Lightstone. Dechert LLP acted as legal advisor on behalf of Arbor. Bear, Stearns & Co. Inc., Blackstone Corporate Advisory, Bane of America Securities and Merrill Lynch & Co. acted as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP acted as legal advisor to Extended Stay Hotels and Blackstone. |
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