CHARLOTTE, NC—Extended Stay America, Inc. revealed the estimated terms of its initial public offering, expecting 28.3 million shares to price at $18 to $21 each.
The shares have been approved for listing on the New York Stock Exchange under the symbol STAY. The lodging company filed a registration statement last July with the U.S. Securities and Exchange Commission regarding a proposed IPO.
The offering will consist of paired shares of common stock of Extended Stay America and Class B common stock of ESH Hospitality, a real estate investment trust.
Deutsche Bank Securities, Goldman, Sachs & Co. and J.P. Morgan are serving as lead underwriters for the IPO.
The lodging chain was sold for $3.9 billion at a bankruptcy auction in October 2010 to a joint venture that consists of Blackstone Group LP, Centerbridge Partners LP and Paulson & Co. Each party owns about a third of the company.
Extended Stay America, which has more than 600 hotels across the U.S. and Canada, has been in a phased consolidation and renovation of its stable of brands, transforming Homestead Studio Suites, Extended Stay Deluxe hotels and Studio Plus Deluxe Studios to Extended Stay America. Crossland Economy Suites remained outside the consolidation.
The phased process is expected to continue into 2014 before it is complete. Blackstone Group LP, Centerbridge Partners LP and Paulson & Co.have invested a reported $420 million into the process. Jim Donald, who was named CEO of Extended Stay Hotels last year, is overseeing the transition, along with Chief Marketing Officer Tom Seddon.