GREENWICH, Conn. (AP) — Extended Stay Hotels says it has decided to take an investment offer worth up to $905 million from a group led by Starwood Capital Group in order to exit bankruptcy, abandoning an earlier proposal from Centerbridge Partners and Paulson & Co.
The hotel chain says the proposal from Starwood, TPG Capital and Five Mile Capital Partners would value it at about $3.9 billion after the deal closes as well as strengthen its balance sheet and lower its debt.
Private equity firm Starwood was founded and is controlled by hotel magnate Barry Sternlicht. He would serve as Extended Stay's chairman.
The group's offer is not conditioned on any financing but does need bankruptcy court approval.
