Comtex SmarTrend Alert

3/18/2010-Starwood Capital Group, TPG Capital and Five Mile Capital Partners announced Thursday that they have reached an agreement to invest up to $905 million in Extended Stay Hotels, Inc. as part of a recapitalization plan that would allow the hotel chain to emerge from bankruptcy.
The proposal would allow Extended Stay, which would be valued at approximately $3.9 billion post transaction, to emerge from bankruptcy with a significantly stronger balance sheet, reduced debt load and significant cash reserves to invest in its properties and operations.
The consortium's plan is not conditioned on any financing or due diligence provisions, but is subject to approval by the Bankruptcy Court.
"We are excited about the prospects of acquiring Extended Stay," said Barry Sternlicht, Chairman and CEO of Starwood Capital Group."We believe we have made a very compelling offer with the specific intent of balancing and considering the interests of all stakeholders involved here. Starwood Capital has unparalleled experience in the hospitality sector and we believe we are uniquely positioned to work with the team to help the company flourish and maximize the company's potential for all stakeholders."